What are Securities Laws? - Explained
Regulation of the Sale of Securities
Written by Jason Gordon
Updated at October 7th, 2022
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What are securities laws?
Securities laws are the federal and state statutes and regulations that control the sale or transfer of rights or ownership interests in a business entity (securities). Specifically, securities laws purport to protect the general public from deceptive practices in the sale or trade of securities. The major securities laws include the Securities Act of 1933 and the Securities Exchange Act of 1934. The primary method of protecting investors prescribed under these acts is thorough disclosure of relevant or material information. As we discuss in this chapter, the requirements for the disclosure of information vary based upon the nature of the sale or transfer of securities.
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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 Federal Government seeks to protect the rights of private owners of a business entity? Do you believe that the disclosure of relevant or material information is the best way of achieving this goal? Why or why not?
Practice Question
What are the laws applicable to the sale or trade of securities?