What is one of the main protections offered by the Securities Act?

The Securities Act is primarily designed to promote transparency and fairness in the securities markets, which is achieved through the protection from unfair investment practices. This encompasses a range of regulations that ensure that investors have access to important information about the securities in which they are investing, helping to prevent fraud and misleading practices. The Act requires issuers of securities to provide detailed disclosures about their financial condition, risks, and business operations, which assists investors in making informed decisions.

By addressing issues such as insider trading, false statements, and other manipulative practices, the Act helps to create a more equitable marketplace. This protection is crucial for maintaining investor confidence and ensuring that markets operate fairly, which is a fundamental principle underlying the functioning of capital markets.

The other options, such as providing insurance for investors or guaranteed returns, do not accurately reflect the primary objectives of the Securities Act. Instead, the Act focuses on safeguarding against unfair practices, thereby promoting a more secure and reliable investment environment.