Securities Fraud
Laws and legal information about securities fraud
Federal Securities Laws Overview
The two primary federal laws governing securities are the Securities Act of 1933 and the Securities Exchange Act of 1934, which are are covered in separate articles. Trust Indenture Act of 1939This Act applies to debt securities such as bonds, debentures, and notes that are offered for public sale. Even though such securities may be registered under the Securities Act, they may not be offered for sale to the public unless a formal agreement between the issuer of bonds and the bondholder, known as the trust indenture, conforms to the standards of this Act. The full text of this Act is available at: http://uscode.house.gov/download/pls/15C2A.txt (Subchapter III). (Please check the Classification Tables maintained by the US House of Representatives Office of the Law Revision Counsel for updates to any of the laws.)Investment Company Act of 1940This Act regulates the organization of companies, including mutual funds, that engage primarily in investing, reinvesting, and trading in securities, and…
Securities Fraud and the Securities Act of 1933
Often referred to as the "truth in securities" law, the Securities Act of 1933 has two basic objectives:require that investors receive financial and other significant information concerning securities being offered for public sale; andprohibit deceit, misrepresentations, and other fraud in the sale of securities. The full text of this Act is available here. Read more
Securities Exchange Act of 1934
With the Securities Exchange Act of 1934, Congress created the Securities and Exchange Commission. The Act empowers the SEC with broad authority over all aspects of the securities industry. This includes the power to register, regulate, and oversee brokerage firms, transfer agents, and clearing agencies as well as the nation's securities self regulatory organizations (SROs). The various stock exchanges, such as the New York Stock Exchange, and American Stock Exchange are SROs. The National Association of Securities Dealers, which operates the NASDAQ system, is also an SRO. Read more