What is the difference between Securities Act of 1933 and the Securities Exchange Act of 1934?
The Securities Act of 1933 and the Securities Exchange Act of 1934 are both federal laws enacted to regulate and protect the securities industry. These laws are commonly known as the "Truth in Securities" acts or the "33 act" and the "34 act." The Securities Act of 1933, which is also known as the "33 act," is a disclosure law. This law requires all companies registering with the Securities and Exchange Commission (SEC) to provide full and accurate information about their finances and the risks involved in investing in their securities. This law was enacted to protect investors by ensuring that they have access to information before making an investment decision. The Securities Exchange Act of 1934, also known as the "34 act," is a regulatory law. This law regulates the trading of securities. It established the SEC and gave the agency the authority to oversee and regulate the activities of public companies, stock exchanges, brokers, and dealers in the securities markets. This law was enacted to protect investors from fraud or manipulation in the stock market. In summary, the Securities Act of 1933 requires companies to provide full and accurate information before investors make decisions to invest, while the Securities Exchange Act of 1934 regulates the trading of securities and protects investors from fraud or manipulation. Both acts are important in protecting investors and ensuring a fair and efficient securities market.
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