4.1.5. The Registration Process
Before an issuer that does not qualify for an exemption can begin selling its securities, the issuer must register the new securities with the SEC. Before the stock market crash of 1929, many people invested in securities without having much information about their securities. Because of this lack of knowledge, speculative investing was common, and many investors did not have the cash to back up their investments when they failed. Thus, when the market plunged, the house of cards came crashing down. The Securities Act of 19