Securities Act of 1933

The Securities Act of 1933 is a U.S. law designed to ensure transparency in the financial markets. It requires companies to provide detailed information about their securities, such as stocks and bonds, before they can sell them to the public. This includes a registration process where companies must file a prospectus that outlines their business, finances, and risks involved. The main goal is to protect investors by preventing fraud and ensuring they have the necessary information to make informed decisions about their investments.