Question

Order the question two most important laws regulating securities in the united states are (i) the securities act of 1933 (the 1933 act), and (ii) the securities and exchange act of 1934 (the 1934 act). each of these two acts are landmark pieces of legislation that continue to regulate the operation of us securities markets today (and both are discussed in the textbook). The 1933 act regulates the sale or issuance of new securities. List and explain two provisions of how the 1933 act regulates such sales or issuances

Answer 1

The Securities Act of 1933 requires companies issuing new securities to provide a comprehensive registration statement to the SEC, ensuring full disclosure of material information, and holding parties accountable for any misstatements, protecting investors and maintaining market integrity.

Step-by-step explanation:

The Securities Act of 1933, often referred to as the 'truth in securities' law, has two key provisions that regulate the sale or issuance of new securities. Firstly, it requires issuers to provide full and fair disclosure of all material information about their offering in a registration statement, which includes financial statements certified by independent accountants. Secondly, the Act imposes liability for false and misleading statements made in the registration statement or the omission of required information, thus protecting investors and maintaining market integrity.

Under the first provision, any company wishing to issue new securities must file a registration statement with the Securities and Exchange Commission (SEC) before they can be offered to the public. This statement is scrutinized for adequacy and must include financial data, a description of the company's properties and business, information about the management, and any legal problems the company might be facing.