What are the rules governing the sale of securities in the United States?
In the United States, the sale of securities is governed by the Securities Act of 1933 and the Securities Exchange Act of 1934. These laws are collectively referred to as the "federal securities laws". Under these laws, any person or business involved in the sale of securities must register with the Securities and Exchange Commission (SEC). The SEC is responsible for regulating the sale of securities and ensuring the transparency of the securities markets. In the sale of securities, the SEC requires disclosure of important information to potential investors. The disclosure requirements include financial statements and other information about the company offering the security. This allows potential investors to make an informed decision when investing their money. In addition, the SEC has specific rules regarding insider trading. Generally, the rules prohibit insiders, such as company officers and employees, from purchasing or selling the company’s securities while in possession of material, nonpublic information. Finally, the SEC also has rules governing the advertising and promotion of securities. This includes both the content of the promotion as well as the manner in which the promotion must be conducted. Overall, the federal securities laws are designed to protect investors by ensuring that their investments are properly disclosed and that they are not engaging in unethical or fraudulent activities. These rules are applicable to all states, including North Carolina.
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