QST LA 245 Chapter Notes - Chapter 20: Accredited Investor, Securities Act Of 1933, Underwriting
23 Jul 2018
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In 1933, congress passed the securities act of 1933 to regulate the issuance of new securities. Congress then passed the securities exchange act of 1934 to regulate companies that had publicly traded. April 20th, 2011 securities and to establish the securities and exchange commission (sec), the regulatory agency that oversees the securities industry. Commission take no action if the transaction is done in a specified manner. The sec can also bring cease and desist orders against those who violate the securities law, and it can also levy fines or confiscate profits from illegal transactions. A security is any transaction in which the buyer (1) invests money in a common enterprise and (2) expects to earn a profit predominantly from the efforts of others. The 1933 act requires that, before offering or selling securities, the issuer must register the securities with the sec, unless the securities qualify for an exemption. An issuer is the company that sold the stock.
