Asked by Jenna Raney on Jun 15, 2024
Verified
Pharma Corporation is a public company whose shares are traded in the public securities markets. With respect to financial and other significant information concerning its securities, the Securities Act of 1933
A) imposes increased responsibility on corporate executives.
B) prevents insiders from trading among themselves.
C) requires disclosure.
D) creates a safe harbor for forward-looking statements.
Securities Act
A U.S. law enacted in 1933 that regulates the offer and sale of securities to protect investors against fraud.
Pharma Corporation
A company involved in the development, production, and marketing of pharmaceutical drugs and medications.
Financial Information
encompasses data related to the monetary aspects of an individual or organization, such as assets, liabilities, income, and expenses.
- Absorb the stipulations for public entities as outlined in the Securities Act of 1933 and the Securities Exchange Act of 1934.
- Acknowledge the necessity of clear disclosure during registration and the effects of presenting incorrect information.
Verified Answer
MS
Maria SaccocciaJun 18, 2024
Final Answer :
C
Explanation :
The Securities Act of 1933 requires companies that offer securities to the public to provide full and fair disclosure of relevant information to investors, which helps them make informed decisions.
Learning Objectives
- Absorb the stipulations for public entities as outlined in the Securities Act of 1933 and the Securities Exchange Act of 1934.
- Acknowledge the necessity of clear disclosure during registration and the effects of presenting incorrect information.