Respuesta :
An investor claims a prospectus contained an untrue statement. For purposes of bringing a civil suit for liability under Section 12 of the Securities Act of 1933, and claiming damages, the information must have been untrue at the time of sale.
What Is the Securities Act of 1933?
Following the 1929 stock market disaster, the Securities Act of 1933 was developed and enacted into law to safeguard investors. The Act had two main objectives: to establish regulations against deception and fraudulent activity in the securities markets; and to ensure greater transparency in financial statements so that investors may make informed investment decisions.
Securities Exempt from SEC Registration
The Act's registration requirement does not apply to all securities offerings. These incorporate:
- Intrastate products and services
- Limited-size offerings
- Municipal, state, and federal government-issued securities
- Private offerings to a select few people or organizations.
The Securities Act of 1933 also sought to outlaw false statements and deception. The measure aims to end fraud that occurs during the sale of securities.
Learn more about the Securities Act of 1933 with the help of the given link:
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