What is the primary purpose of the Securities Act?

The primary purpose of the Securities Act is to protect investors by regulating securities transactions. This legislation was established to provide a framework for transparent and fair trading in the securities markets, ensuring that all relevant information is disclosed to investors. This includes requirements for registration of securities, providing full disclosure of financial information, and preventing fraud in the sale of securities. The focus is on safeguarding investors from deceptive practices and providing them with the necessary information to make informed decisions about their investments.

In this context, while the other choices address aspects of the financial market, they do not directly align with the core mission of the Securities Act. Ensuring fair competition among firms or promoting corporate mergers and acquisitions does not inherently focus on investor protection. Limiting foreign investments is also not a primary goal of the act, which instead emphasizes full disclosure and equal opportunity for all investors in the U.S. securities markets.