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 two very important pieces of federal legislation in the United States. The Securities Act of 1933, also known as the “Truth in Securities Act,” was enacted to promote open and honest disclosure of financial information between companies and potential investors. This act requires companies to register their securities and make certain disclosures to the public, including financial statements and risks associated with investing in the company. The Securities Exchange Act of 1934 is meant to regulate transactions in the secondary market and protect investors from the fraudulent practices of brokers and dealers. The Act established the Securities and Exchange Commission (SEC) to oversee the stock market, broker registration and the registration of stock exchanges. The Act requires certain disclosures to be made when a company is issuing securities and requires companies to keep accurate records. Additionally, it outlines certain trading practices and requires companies to register with the SEC if they meet certain criteria. Both the Securities Act of 1933 and the Securities Exchange Act of 1934 are meant to protect the public against fraudulent practices. The 1933 Act is intended to provide transparency in the information provided by companies to the public, while the 1934 Act seeks to regulate securities transactions.

Related FAQs

What is the difference between "front running" and "reverse mergers" in securities fraud?
How is the SEC empowered to investigate and prosecute securities fraud cases?
What are the requirements for registering a security?
How does the SEC enforce securities fraud laws?
Is it illegal to engage in market manipulation in a securities fraud case?
How do you prove a securities fraud case?
What are the different types of research used in securities fraud cases?
What is a pump and dump scheme in securities fraud?
What is a "false disclosure" in a securities fraud case?
What is a "material misrepresentation" in securities fraud?

What is the difference between Securities Act of 1933 and the Securities Exchange Act of 1934?

Related FAQs

Related Blog Posts