6.1.5. Registration of Public Securities Offerings
At the core of the Securities Act of 1933 is the belief that investors have a right to make informed decisions about the securities they are interested in purchasing. Often referred to as the “truth in securities” law, the Securities Act of 1933 has two basic objectives:
- 1. To require that investors receive financial and other significant information concerning securities being offered for public sale
- 2. To prohibit deceit, misrepresentations, and other fraud in the sale of securities
In general, all securities offered in the U.S. must be registered with the SEC or must qualify for an exemption from the registration requirements. The registration forms that a company files with the SEC provide information that potential investors need to help them decide whether they want to invest, including:
- • A description of the company’s properties and business
- • A description of the security being offered
- • Information about the management of the company
- • Financial statements certified by independent accountants
Registration statements and other forms must be file
