Securities Regulation

Securities Regulation - Securities Regulation 1....

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Securities Regulation 1. Introduction a. Generally both State & Federal regulations are designed to prevend fraud in the sale of securities by requiring disclosure of all material information about the company so as to enable the investor to make an intelligent and fully informed decision as to whether to purchase the securities. 2. What is a Security? a. An investment of money or other consideration b. In a common enterprise c. With the investor expecting a profit and d. With the profit derived primarily through the efforts of a promoter or a third party other than the investor. SECURITES ACT OF 1933 Requires full and truthful disclosure by companies issuing securities. He securities have to be registered with the S.E. C. before they are sold to the public. Regulates initial or primary offerings. Requirements of the Registration Statement A. It must contain certain information calculated to provide the potential investor with the necessary information upon which to base his/her decision B. It is signed by the officers & directors and makes the signees liable for false statements & material omissions. The issuer may also be liable. C. Law requires that a potential investor be provided with a prospectus which is defined as any solicitation of sale. A prospectus basically is a disclosure statement containing much
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Securities Regulation - Securities Regulation 1....

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