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 of the most important pieces of legislation in securities law. Both of these acts are aimed at protecting investors from fraudulent activities in the stock market. The Securities Act of 1933 is also known as the “Truth in Securities” law. This act required companies to publish accurate and complete information about their securities offerings. The goal of this was to make sure investors were informed before they purchased a security. This act also requires the registration of securities with the Securities and Exchange Commission (SEC). The Securities Exchange Act of 1934 is a federal law that regulates the secondary market (stock traders) and governs the exchange of information in the stock market. This act works to prevent investors from being defrauded by stock market manipulation, insider trading, and other forms of securities fraud. This act also established the SEC, which regulates the stock market and protects investors. In summary, the Securities Act of 1933 revolves around providing truthful and accurate information about securities offerings to investors. The Securities Exchange Act of 1934 puts in place regulations to prevent fraud and manipulation in the stock market. Both of these acts are important in protecting investors from fraudulent activities in the stock market.
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