What Do These Securities Laws Cover?
By: LawInfo
The Securities Act generally requires companies to give investors full disclosure of all material facts, the facts investors would find important in making an investment decision. This Act also requires companies to file a registration statement with the SEC that includes information for investors. The SEC does not evaluate the merits of offerings, or determine if the securities offered are good investments. The SEC staff reviews registration statements and declares them effective if companies satisfy their disclosure rules.
The Exchange Act requires publicly held companies to disclose information continually about their business operations, financial conditions, and managements. These companies, and in many cases their officers, directors and significant shareholders, must file periodic reports or other disclosure documents with the SEC. In some cases, the company must deliver the information directly to investors.
The Investment Company Act governs activities of investment companies, such as mutual funds, that are primarily serve as collective investment vehicles for others.
The Advisers Act establishes a pattern of regulating those who manage or advise others on how to invest. In some respects, it resembles the Exchange Act that governs the conduct of securities brokers and dealers, and generally requires that firms compensated for advising others about securities investment to register with the SEC and conform to statutory standards designed to protect investors.
Search LawInfo's Securities Resources
Additional Securities FAQs
-
Q:
What is 'strict liability'?
A: Some persons or companies may be held “strictly liable” for certain activities or products that harm others, even if it can’t be shown they acted … More -
Q:
What Is A Security?
A: A Security is an investment instrument. It includes investments such as stocks, notes, bonds, debentures, investment contracts, interests in limited partnerships, and … More -
Q:
What is a class action lawsuit?
A: A class action is a case brought against a company whose actions have damaged many people in a similar way. If the case results in a successful recovery, either … More -
Q:
What Are The Federal Securities Laws?
A: Congress enacted the Federal Securities Laws In an effort to curb future excesses and to provide fair disclosure to investors. The Securities and Exchange Commission … More -
Q:
What Is The Securities Investor Protection Act?
A: It is a law that establishes the Securities Investor Protection Corporation (SIPC) which acts to insure investors for up to $500,000 when the brokerage firm is a … More -
Q:
Are There State Securities Laws?
A: Yes, the federal and state governments each have their own securities laws and regulations. If a company is selling securities, it must comply with both federal and … More -
Q:
What Are Blue Sky Laws?
A: Every state has its own securities laws commonly known as "Blue Sky Laws" that are designed to protect investors against fraudulent sales … More -
Q:
Are All Companies Subject To Securities Laws?
A: Some companies, depending on their type and how they are structured, are exempt from the registration and reporting requirements of the securities laws. Although, … More -
Q:
If A Company Goes Public, What Must It Disclose?
A: Companies must report information about their operations, their officers, directors, and certain shareholders, the financial condition of the business and their … More -
Q:
What is securities arbitration?
A: In 1987, the U.S. Supreme Court held that brokerage firms could enforce predispute arbitration clauses contained in their standard form customer agreements. … More
Securities Sub-categories
| Initial Public Offerings | Securities and Exchange Commission |
