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

The main purpose of the Securities Act of 1933 is to protect investors by requiring disclosure. This legislation was established in response to the stock market crash of 1929 and aims to restore investor confidence in the securities markets. By mandating that companies provide transparent and full disclosure of relevant information about their securities, potential investors can make informed decisions. This includes details about a company's financial health and the risks associated with investment in its securities.

Transparency in financial markets is indeed a significant aspect, as it aligns with the purpose of the Act, but the primary focus is on investor protection through disclosure requirements. The Act seeks to prevent fraudulent practices and misrepresentation by ensuring that all investors have access to the same critical information before making investment decisions. Therefore, while other options may play a role in the broader financial regulatory environment, the core task of the Securities Act of 1933 is fundamentally about safeguarding investors.