Which of the following statements accurately describes finance- and housing-related legislation as it pertains to investments in securities?

• A. The Sarbanes-Oxley Act of 2002 was enacted primarily to regulate housing loans and mortgage rates.
• B. The Dodd-Frank Act eliminated all requirements for financial institutions to disclose investment risks.
• C. The Fair Housing Act governs the issuance and trading of corporate bonds in the securities market.
• D. The Securities Act of 1933 requires companies to register securities offerings with the SEC to protect investors from fraud.

Answer: (D)

Verified step by step guidance

1. Step 1: Begin by analyzing the question to identify the key focus, which is finance- and housing-related legislation as it pertains to investments in securities.
2. Step 2: Review each statement provided in the question and assess its accuracy based on your knowledge of financial legislation. For example, the Sarbanes-Oxley Act of 2002 primarily addresses corporate governance and financial reporting, not housing loans or mortgage rates.
3. Step 3: Evaluate the Dodd-Frank Act, which introduced significant financial reforms but did not eliminate all requirements for financial institutions to disclose investment risks. It aimed to increase transparency and reduce systemic risks.
4. Step 4: Consider the Fair Housing Act, which is focused on preventing discrimination in housing-related transactions and does not govern the issuance or trading of corporate bonds in the securities market.
5. Step 5: Conclude by identifying the correct statement, which is that the Securities Act of 1933 requires companies to register securities offerings with the SEC to protect investors from fraud. This aligns with the purpose of the Act to ensure transparency and safeguard investors.