Find a Securities Law Lawyer Continued…

Congress intended the law to empower investors, and not the government, to make informed investment decisions. To assist with its objectives of informing potential investors and fair dealing in the market place, the 1933 Act requires issuers to disclose significant information about themselves. Disclosure also has the added benefit of discouraging bad behavior on the part of those selling securities. Other Securities Acts In addition to the Securities Act of 1933, there were several other acts that were created to protect those that purchase securities. The Exchange Act – Allows investors access to current financial another information regarding securities. The act focuses on securities that are publicly traded. The Exchange Act prohibits brokerage firms and other from engaging in fraudulent or unfair behavior, such as insider trading. Investment Company Act – The Investment Company Act was created in 1940 and governs activities of investment companies. This piece of legislation clearly defines the responsibilities and limitations placed upon fund companies that offer investment products to the public. Advisors Act – The Advisors Act establishes a pattern of regulating those that manage other people's money. The act is very similar to the Exchange Act, setting the compensation limits for brokers and dealers that are advising other about securities. By Chris Saunders