Securities Act of 1933

The 'truth in securities' law governing the PRIMARY market: new issues must be registered with the SEC and sold with a prospectus containing full and fair disclosure, with liability for misstatements.

The Act also defines the exemptions — government and municipal securities, private placements, intrastate offerings — that excuse registration. Disclosure, not merit, is its philosophy: the SEC never vouches for an investment’s quality.

Related terms

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