Find the right lawyer now

Securities Act of 1933 Lawyers

Find a Local Bankruptcy & Finances Lawyer near You

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.

Photo of page author Ken LaMance

, LegalMatch Law Library Managing Editor and Attorney at Law

Last Modified: 06-29-2018 12:42 AM PDT

Law Library Disclaimer
  • No fee to present your case
  • Choose from lawyers in your area
  • A 100% confidential service
What is LegalMatch?

We've helped more than 4 million clients find the right lawyer – for free. Present your case online in minutes. LegalMatch matches you to pre-screened lawyers in your city or county based on the specifics of your case. Within 24 hours experienced local lawyers review it and evaluate if you have a solid case. If so, attorneys respond with an offer to represent you that includes a full attorney profile with details on their fee structure, background, and ratings by other LegalMatch users so you can decide if they're the right lawyer for you.