What is the primary purpose of the Investment Advisers Act of 1940?

The primary purpose of the Investment Advisers Act of 1940 is to regulate investment advisers and protect investors. This legislation was enacted to address issues related to the growing number of investment advisers and to create standards for their conduct in the investment advisory industry.

The Act mandates that advisers who provide advice about securities must register with the Securities and Exchange Commission (SEC) and adhere to specific rules and regulations designed to ensure transparency and accountability. By doing so, the Act aims to protect clients from fraud, misrepresentation, and other unethical practices while ensuring that advisory services are provided in a manner that is in the best interest of investors.

Additionally, the Act requires investment advisers to provide clients with disclosures regarding their services, fees, and potential conflicts of interest. This collection of measures underscores the Act's foundational goal of safeguarding investors' interests in the financial markets, making answer A not only correct but fundamental to understanding regulatory frameworks within the investment advisory landscape.

The other options, while they touch on important aspects of finance and investing, do not capture the specific focus of the Investment Advisers Act of 1940 on regulating investment advisers and protecting investors.