What Are Securities And Exchange Law?

Often securities and exchange law may be called the “truth in securities”, which has two objectives under the original 1933 act. First an investor is required to receive any information deemed significant, including financial information about securities that will be offered up to the public for sale. The second objective is to prohibit any sort of misrepresentation, fraud or deceit when the security is sold

Any securities that will be sold in the United States are required to be registered. A company needs to fill out a form that will give the facts that are essential, and thus minimize any chance they are not following the laws. Though it’s not a guarantee it is supposed to help, and possible avoid SEC charges.

What Is On The Registration?

A company must put in any properties that are owned by the business, along with what the security they are selling for in detail. Included on the form should be those people who are considered part of management, as well as financial states that have been certified by outside accountants.

Many changes have been made through the years to the securities and exchange laws. Those include the Trust Indenture that was passed in 1939, the Investment company of 1940, along with the investment advisers in the same year. In 2002 the Sarbanes-Oxley would be passed and signed into legislation by President Bush. Finally, in 2010 another act was passed with the Dodd-Frank Act for reform of Wall Street.

Each new act that was passed would add on more requirements and laws that need to be followed by companies. The hope was that it would help to protect consumers across the United States.