Tenacious
Defense

In the heart of Manhattan’s Financial District

Tenacious
Defense

In the heart of Manhattan’s Financial District

An overview of federal securities law

On Behalf of | Nov 5, 2019 | Securities |

The success of the stock market has a huge impact on the financial health of the United States. In the past, it was the case that stock market investors were benefiting from huge financial success for a certain amount of time, followed by a bursting of the bubble in the form of a market crash. When the financial bubble bursts, it leads to extensive financial suffering for people across the United States. It can lead to people losing their homes through foreclosure proceedings and the loss of other significant financial assets.

This is why there are certain laws in place to regulate the stock markets and prevent unfair practices from occurring. These laws are very broad in scope and are part of a very complex system. The following are some of the most important laws and regulations to be aware of.

The Securities Act of 1933

The Securities Act of 1933 was the first federal securities law of its kind. It was a direct response to the economic crash of 1929, and it was put in place in the hope of preventing securities fraud. It requires that potential investors receive significant information when a security is offered for sale. It also prohibits deceit, misrepresentation and fraud.

The Securities Exchange Act of 1934

The Securities Exchange Act of 1934 regulates the secondary market for securities. It prohibits fraud and insider trading, as well as obligating companies to publicize a bidder’s tender offer if they want to purchase more than 5% of the company’s stock.

It is important that you take action to get familiar with federal securities fraud if you are concerned with complying with regulations.

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