What are the federal statutes governing investment fraud?

Investment fraud is the illegal activity that occurs when a person or company misleads or scams investors into believing that their investments will be profitable. In California, the federal statutes governing investment fraud fall under the purview of the Securities and Exchange Commission (SEC). The SEC enforces the federal laws that protect investors from various forms of fraud and abuse, namely the Securities Act of 1933, the Securities Exchange Act of 1934, and the Investment Advisers Act of 1940. The Securities Act of 1933 regulates the sale of securities and creates a legal framework for how securities should be offered, how they must be registered, and how investors should be protected. This act is designed to guard investors against fraudulent practices and assist in the accurate disclosure of information about securities transactions. The Securities Exchange Act of 1934 works to combat fraud in the trading of securities between investors. It established the SEC, which has been given the power to regulate stock exchanges, broker-dealers, and mutual fund activities. The act also requires that certain publicly traded companies and other entities maintain accurate books and records and provide regular financial statements. The Investment Advisers Act of 1940 is designed to ensure that businesses or individuals who give investment advice to clients are honest and transparent in their dealings. It requires advisers to register with the SEC and maintain detailed records of their activities in order to protect their clients from fraud and abuse. By enforcing these laws, the SEC is able to keep investors safe from investment fraud.

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What are the federal statutes governing investment fraud?

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