Final answer:
A trader who uses publicly available information and analysis to trade securities is known as a fundamental analyst. They base their decisions on information mandated by the Federal Securities Act and overseen by the Securities and Exchange Commission.
Step-by-step explanation:
The type of trader who decides to trade securities based on publicly available information and analysis is known as a fundamental analyst. These traders utilize information such as financial reports, economic data, and company announcements which are disseminated following the guidelines set by the Federal Securities Act. This act established the legal standards for disclosure which helped make such information available to investors and professionals in the markets. The subsequent creation of the Securities and Exchange Commission (SEC) further helped to regulate the investment industry, ensuring that the securities markets operate fairly and transparently. Fundamental analysts conduct their own research and analysis based on this disclosed information to make trading decisions.