Major Federal Securities Laws - Explained
1933 Act and 1934 Act
Written by Jason Gordon
Updated at September 25th, 2021
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Table of Contents
What are the primary security laws?What is the 33 Act? What is the 34 Act?Discussion QuestionPractice QuestionAcademic ResearchWhat are the primary security laws?
Securities are subject to federal and state regulation. State securities laws are known as Blue Sky laws and are discussed at the end of this chapter. The two primary federal laws governing the trade or sale of securities are the Securities Act of 1933 (33 Act) and the Securities Exchange Act of 1934 (34 Act).
Next Article: Regulatory Goals of the Securities Law Back to: SECURITIES LAW
What is the 33 Act?
The 33 Act provides the rules for the initial sale of securities to the public. This includes detailed rules for the personal disclosure to prospective purchasers and disclosure of information to the general public through registration with the Federal Government.
What is the 34 Act?
The 34 Act concerns the on-going disclosure requirements once company securities are traded publicly, such as on national exchanges. These laws provide for the substantive content of the disclosure, the procedural disclosure requirements, and the repercussions (such as civil and criminal penalties) for failing to adhere to these laws.
Both the 33 and 34 Acts are administered by the Securities Exchange Commission. Along with the regulations promulgated by the SEC, they govern the sale or exchange of securities in any context.
Understanding Securities Law
- Securities Law (Intro)
- What are Securities Laws?
- What is a Security?
- What qualifies as an Investment contract?
- What are the primary federal securities laws?
- What are the regulatory goals of security laws?
- What is the Securities and Exchange Commission?
- What is an Initial Public Offering?
- What is a Direct Public Offering?
- What is Crowdfunding?
Discussion Question
Why do you think the securities laws treats the initial sale of securities to the public separately from the subsequent sale of issued securities on public markets? How are these types of securities different?
Practice Question
What type of activity is regulated by the Securities Act of 1933? The Securities Exchange Act of 1934?