LEGL 226 Chapter Notes - Chapter 37: Jumpstart Our Business Startups Act, Accredited Investor, Initial Public Offering
Document Summary
The sec is the federal agency that enforces securities laws. Security- any transaction in which the buyer: invests money in a common enterprise and, 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. Issuer- a company that sells its own stock. The sec does not, itself, evaluate or investigate the quality of any offering; it simply ascertains that, on the surface, the company has disclosed all required information about itself and the security it is selling. Typically, exemptions are based on two factors: the type of security and the type of transaction. Exempt securities-the 1933 act exempts some types of securities from registration because they. 1 government securities, which include any security issued or guaranteed by federal or state government.
