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Proper value of the securities being offered

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The SEC attempts to protect investors who are purchasing newly issued securities by making sure that the information put out by a company and its investment banks is correct and is not misleading. However, the SEC does not provide an opinion about the real value of the securities; hence an investor might pay too much for some new stock and consequently lose heavily. Do you think the SEC should, as a part of every new stock or bond offering, render an opinion to investors on the proper value of the securities being offered?

Reference no: EM132487724

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