What does Section 17 of the Securities Act address?

Section 17 of the Securities Act focuses on the regulation of fraudulent activities in the context of offering and selling securities. Specifically, it addresses and prohibits fraudulent practices in interstate commerce or through the mails, which means it aims to protect investors from deceptive schemes or scams involving securities. This is crucial because securities transactions often cross state lines, so federal regulation is necessary to ensure fair practices and maintain investor confidence in the market.

The other options pertain to different aspects of securities regulation: insurance requirements for brokers, stock registration methods, and dividend distributions are governed by other sections of securities law but do not fall under the specific prohibitions outlined in Section 17. This makes the focus on fraud and its prevention in interstate commerce the correct interpretation of this section’s purpose.