LGLS 3523 Lecture Notes - Lecture 5: Internal Control, Consumer Protection, Public Company Accounting Oversight Board
31 Mar 2017
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Document Summary
Securities act of 1933: often referred to as the truth in securities law, has two basic objectives. Require that investors receive financial and other significant info concerning securities being offered for public sale. Prohibit deceit, misrepresentations, and other fraud in the sale of securities (the act criminalizes fraud: a primary means of accomplishing these goals is the disclosure of important financial info through the registration of securities. Disclosure (the release of financial information) enables investors to make informed judgments about whether to purchase a company"s securities: the registration process: A description of the the company"s properties and business. A description of the security to be offered for sale. Registration statements and prospectuses go public shortly after. **not all offerings of securities must be registered with the commision. There are many exemptions including private offerings to a limited number of persons or institutions; offerings of limited size; and securities of municipal, state, and federal government.
