The U.S. Securities Act of 1933, often referred to as the "Securities Act," is a federal law enacted as part of the New Deal. It regulates the offer and sale of securities to protect investors against deceit, misrepresentations, and other fraud in the securities markets of the United States.
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Registration Requirements:
- The act requires that any offer or sale of securities in the United States be registered with the Securities and Exchange Commission (SEC), unless an exemption applies.
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Disclosure Mandates:
- Companies must provide potential investors with financial and other significant information concerning securities being offered for public sale.
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Prohibitions and Penalties:
- The act prohibits deceit, misrepresentations, and other fraud in the sale of securities and imposes penalties for such conduct.
Considerations for Investors: Investors are encouraged to utilize the information made available due to the act's disclosure mandates to make informed decisions, understanding that the act aims to promote transparency and fairness in the securities market.
While the U.S. Securities Act of 1933 is a U.S. regulation, its principles and the protection it offers can be a reference point for understanding securities regulation in general, including in the Philippines where similar protective measures are in place through the Securities and Exchange Commission (SEC) of the Philippines.