Williams Act

The Williams Act, enacted in 1968, is a U.S. federal law regulating the acquisition of large ownership stakes in publicly traded companies. It requires clear disclosure of anyone buying over 5% of a company's stock, including their intentions and plans. The law aims to ensure transparency, protect shareholders’ interests, and prevent market manipulation by making all significant investors publicly accountable during takeover efforts. Essentially, it promotes fair and open trading practices when individuals or entities seek to gain substantial control or influence over a company through stock purchases.