Securities Act

The Securities Act of 1933 is a U.S. law designed to ensure transparency in the securities market. Its primary purpose is to require companies to provide accurate information about their financial status when they sell stocks and bonds to the public. This helps protect investors from fraud and ensures they have the necessary information to make informed decisions. The Act mandates that companies file registration statements and prospectuses with the SEC (Securities and Exchange Commission) before public offerings, ensuring that potential investors are well-informed about the risks involved.