Your friend Charlie is excited about a newly issued stock. Youve looked at the companys prospectus and

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Your friend Charlie is excited about a newly issued stock. You’ve looked at the company’s prospectus and feel it’s a very risky venture. You told Charlie your opinion, and he said he wasn’t worried because the stock has been approved by the SEC and therefore must be OK. Write a paragraph to help Charlie out. What is the main thrust of federal securities regulation?

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