What federal laws regulate public stock offerings?
The two main laws are the Securities Act of 1933 and the Securities Exchange Act of 1934. The Securities Act of 1933, usually called the Securities Act, requires companies to give investors full disclosure of all material facts that are important in investment decisions. Companies do this by filing a registration statement with the SEC that includes detailed information important to investors. The Securities Exchange Act of 1934, known as the Exchange Act, requires companies that have already sold securities to the public to continually provide information to its investors and the SEC about operations, financial conditions, management, profit prospects, and other matters important to investors.
