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Securities Laws for Beginners

According to the Securities and Exchange Commission, the federal laws that govern the securities industry are:


Each piece of legislation is designed to provide protections to investors by requiring that companies provide a description of the company’s properties and business; a description of the security to be offered for sale; information about the management of the company; and financial statements certified by independent accountants. Unregistered securities fall under certain exemptions that include private offerings to a limited number of persons or institutions; offerings of limited size; intrastate offerings; and securities of municipal, state, and federal governments. For a complete breakdown of U.S. federal securities laws, click here.

The uninitiated might think that the federal government alone has jurisdiction over securities laws.  This is simply not, however, the case.  Regular AIMkts contributor Robert Rapp provides an excellent overview from the accredited investor’s perspective in “Blue Sky Regulation: A Primer for Accredited Investors”.