U.S. Securities Act of 1933

The U.S. Securities Act of 1933 is a law that requires companies offering securities—like stocks or bonds—to provide full, truthful information to investors through detailed registration statements and disclosures. Its main goal is to ensure transparency, helping investors make informed decisions and protecting them from fraud. Before selling securities to the public, companies must register with the Securities and Exchange Commission (SEC) and disclose financial health, risks, and other material details. This law promotes fair markets by increasing accountability and reducing deceptive practices in initial securities offerings.