Securities Act of 1933 Lawyers
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What is the Purpose of the Securities Act?
The Securities Act insures that investors do not have to blindly buy stocks, bonds, mutual funds, and other securities. The Act requires that investors are given detailed financial and other information about what they are investing in. For example, if an investor was buying shares of stock of a public company, the company would have to furnish the investor with information like balance sheets and budgets, along with basic information about the purpose and goals of the company.
The Act also requires that there can be no fraud or deceit in the sale of securities. In other words, the information provided to investors must be truthful and accurate to the best knowledge of the supplier.
How is Information about Securities Relayed to the Investors?
Most kinds of securities are required to be registered with the Securities and Exchange Commission. In order to be registered, certain information about the securities must be provided to the SEC:
- A description of the company offering the securities, including their business, objectives, and properties they own
- What kind of securities are being offered for sale
- Who manages the company
- Financial statements, such as balance sheets, budget, and other items ¿ which must be certified by independent accountants
After this information is registered, the SEC makes it available to the public. However, it is common these days for companies to make that information available on their own website so it may not be necessary for investors to dig through an SEC database to find information about a particular security from a particular company.
What Can I Do if Information from a Public Company Turned Out Not to be Accurate and Resulted in a Significant Loss in My Investment?
The SEC requires that the information provided by companies during the registration process be accurate, but it cannot guarantee it. If you have invested in securities by a company based on false information provided by the company, and you can prove that the company knowingly provided false information, you may want to consult a securities law attorney. Your lawyer can advise you of your rights and let you know if you are entitled to money damages in a lawsuit against the company. In addition, you may want to lodge a complaint with the SEC if the false information has not already been caught by them.
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Last Modified: 06-04-2014 11:10 AM PDT
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