What is the main goal of the Securities Act of 1933?

The main goal of the Securities Act of 1933 is to eliminate financial fraud and require disclosure of significant information to investors. This act was a response to the stock market crash of 1929 and the subsequent Great Depression, aiming to restore public confidence in the securities markets. By mandating that companies provide detailed information about their securities, including potential risks, the act ensures that investors have access to the information necessary to make informed decisions. This level of transparency helps to prevent fraudulent practices and misrepresentations in the sale of securities.

Regulating interest rates, overseeing the banking sector, and providing insurance for investors pertains to different aspects of financial regulation and investor protection and are not the primary focus of the Securities Act of 1933. The act specifically emphasizes the importance of information disclosure and transparency in financial transactions, which is crucial for maintaining the integrity of the securities market.