Got a tricky question? Receive an answer from students like you! Try us!

Securities act of 1933 - Essay Example

Only on StudentShare
College
Essay
Miscellaneous
Pages 7 (1757 words)

Summary

Securities act of 1933 is necessary to bring into light more information about the offered securities for the investors. It has bounded the companies to disclose accurate information based on which the investors will share their capital or invest their money to the market…

Extract of sample
Securities act of 1933


In fact, this law was brought into light after the great depression in 1929 in the US economy. By means of fraudulent activities, many companies sold fake securities based on false information and thus huge investment from the investors went in vain.
So, underlying principle of 1933 act was to help potential investors get information about the company (issuer) and its securities that are offered for sale publicly. This overt expression from the issuer, thereby results a more concerned securities market because the investor were fully aware of the background of the company and their securities before investing money into purchase.
Thus, it was a pressing need for a first major federal law which can govern the unstable situation in a uniform manner. In fact, from the buyer point of view, it was really inspiring step to make the issuers conformed to certain rules as to disclose their information accurately before they offer or sale securities.
Regardless of whether securities must be registered, the 1933 Act makes it illegal to commit fraud in conjunction with the offer or sale of securities. A scammed investor can sue for recovery under the 1933 Act.
Rule 144, promulgated by the SEC under the 1933 Act, permits, under limited circumstances, the sale of restricted and controlled securities without registration.. ...
Download paper
Not exactly what you need?

Related Essays

Sarbanes Oxley Act Master Essay
(Letwin, 2004)…
25 pages (6275 words)
Initial Public Offering (IPO)
The present research study is a detailed examination of the under pricing and long term performance of 20 IPOs in Indian market listed on Bombay Stock Exchange (BSE) or National Stock Exchange (NSE)or both. The paper attempts to investigate both under pricing and under performance of IPOs in the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) for a period of one year.…
8 pages (2008 words)
Case for Briefing Dewsnup v. Timm 116 L.Ed. 2d 903, 112 S. Ct. 773 (1992)
In 1986 and 1987, plaintiff-respondents filed complaints in the Federal District Court for the District of Oregon, alleging that they were induced to invest in the partnerships by misrepresentations in offering memoranda prepared by petitioner and others in violations of inter alia, 10 (b) of the Securities Exchange Act of 1934 and Rule 10b-5 and further assert that they become aware of the…
2 pages (502 words)