Securities Act

Definition:

US Securities Act of 1933, as amended. A federal law, passed by the US Congress in the aftermath of the 1929 stock market crash, that governs the offer and sale of securities in the Primary Market and prohibits the offer or sale of securities (aside from certain exempt securities or transactions) unless the securities have been registered with the SEC. It is based on the belief that all investors should be provided full and accurate disclosure of information at the time of making investment decisions, which is sometimes called the “sunlight” (or sunshine) theory of regulation. Also referred to as the ’33 Act.

Return to Glossary