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Securities Act of 1933 The Securities Act of 1933, a federal law in the United States, is also known as the Truth in Securities Act or the Federal Securities Act. The law requires that investors be provided with financial and other relevant information concerning securities that are made available for sale to the public. Further, the law prohibits misrepresentation, fraud, and deceit in the sale of securities. Securities must be registered and the essential facts must be made available to the public. As part of the program of legislation known as the "New Deal" put forth during the first administration of President Franklin D. Roosevelt, the Securities Act of 1933 came in large part as a response to the devastating stock market crash of 1929 and the resulting Great Depression that wiped out personal investments across the United States. The goal of the legislation was to increase public trust in the financial markets and to help investors make informed judgments about their purchases. More Terms Explained here |
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