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 both play an important role in securities fraud law in Washington. The Securities Act of 1933, also known as the “truth in securities” law, is the first federal law to require companies to provide full and accurate information about their securities for sale to the public. Companies must register their securities with the Securities and Exchange Commission (SEC) and provide investors with a prospectus that contains important information about the business and its securities. The Securities Exchange Act of 1934 is designed to regulate the trading of securities after they have been issued. It sets rules for trading, such as requiring the filing of insider trading reports, prohibiting fraud and market manipulation, and creating the self-regulatory system in which securities exchanges and brokerages are monitored by the SEC. In summary, the Securities Act of 1933 requires companies to provide accurate information while registering their securities with the SEC, while the Securities Exchange Act of 1934 requires rules for trading and imposes certain restrictions. Both are essential to protecting investors and preventing fraud in the securities market in Washington.

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

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