Federal regulation of securities is based on a system of mandatory disclosure intended to protect investors by ensuring that they have the opportunity to make informed decisions.A good example is the prospectus and its mandated disclosures. Explain why each of the following is necessary to properly inform investors:

a description of the company's properties and business;

a description of the securities to be offered for sale;

information about the management of the issuer; and

financial statements certified by independent accountants.