Which act regulates new-issue or primary market securities?

The Securities Act of 1933 is the correct answer because it specifically governs the registration and issuance of securities in the primary market, which is where new securities are offered to investors for the first time. This act was designed to ensure transparency and provide investors with important information regarding the securities being offered so they can make informed investment decisions. It requires companies to file a registration statement with the SEC and provides guidelines to prevent fraud in the sale of securities.

In contrast, the Securities Exchange Act of 1934 primarily focuses on the trading of securities in the secondary market, monitoring the activities of stock exchanges and brokers after securities have already been issued. The Investment Company Act of 1940 regulates investment companies to protect investors, addressing issues related to mutual funds and other investment vehicles rather than the issuance of new securities. The Trust Indenture Act of 1939 applies to the agreements between bond issuers and bondholders, ensuring that the interests of bondholders are protected, but it isn’t concerned with the initial issuance of securities.