What is the purpose of securities law?

The purpose of securities law is to protect investors from fraud and other unfair practices. These laws provide guidance to businesses about the disclosures they must make, and protect investors from false or misleading information. In Hawaii, the state securities commission is tasked with overseeing the enforcement of securities laws. Securities laws require those who offer or trade stocks, bonds, or other securities to disclose information to investors, including information about the issuer and the risks associated with the security. This allows investors to make informed decisions regarding their investments. Securities laws also help to create a fair and transparent marketplace, in which investors can trust that their interests are being protected. These laws generate trust and stability in the market, allowing it to operate efficiently and benefit both investors and businesses. Finally, securities laws provide guidance to businesses on how to register their securities, and place limits on the total amount of securities they can issue to public investors. Knowing the rules helps businesses to avoid violating securities laws and facing possible civil or criminal penalties.

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What is the purpose of securities law?

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