Question

1. The Security Act of 1933 requires the preparation and distribution to potential investors of the:

a. licensing agreement.

b. registration statement and prospectus.

c. registration statement only.

d. prospectus and licensing agreement.

e. registration statement, prospectus, and licensing agreement.

Answer 1

e. registration statement, prospectus, and licensing agreement.

The Security Act of 1933 acts as a disclosure law especially for the Initial Public offering for the sale of securities such that such securities are subject to be registered under various provisions. Besides, a prospectus needs to be drafted inviting the public to buy its securities.