What federal securities law mandates full disclosure of all information related to a new security issue?

The Securities Act of 1933 is the correct response as it was specifically created to ensure that investors receive significant information regarding securities being offered for public sale. This act mandates that companies issue a prospectus that contains detailed disclosure about the security, including financial information, risk factors, and the management of the company. The intention behind this act is to provide potential investors with a comprehensive understanding of what they are investing in, thereby helping to prevent fraud and misrepresentation in the sale of securities.

Other pieces of legislation, while important to the regulation of securities markets, have different focuses and requirements. The Securities Exchange Act of 1934 primarily governs the trading of securities post-issuance and sets up the framework for the Securities and Exchange Commission (SEC) to regulate the entire securities industry. The Trust Indenture Act of 1939 deals with the establishment of written agreements (indentures) between bond issuers and bondholders, ensuring that rights and duties are clearly defined. The Investment Company Act of 1940 regulates investment companies, ensuring they adhere to specific operational and financial standards. Each of these acts plays a vital role in the overall securities regulatory framework, but none directly addresses the full disclosure requirements for new securities issues like the Securities Act of 1933