Major Federal Securities Laws - Explained

The video tutorial explains the Securities Act of 1933, which governs the initial issuance of securities by business entities, and the Securities Exchange Act of 1934, which regulates subsequent trading of these securities. The 1934 Act also established the Securities and Exchange Commission to oversee this area. Both acts impose civil and criminal liabilities and require disclosure from issuers and purchasers. The tutorial highlights the importance of understanding these regulations for anyone involved in securities transactions.

What is the primary focus of the Securities Act of 1933?

• Establishing the Securities and Exchange Commission

• Imposing criminal liabilities on securities fraud

• Overseeing the trading of securities on the open market

• Regulating the initial issuance of securities

Which act governs the trading of securities on the open market?

• Securities and Exchange Commission Act

• Securities Trading Act

• Securities Act of 1933

• Securities Act of 1934

What was created by the Securities Act of 1934?

• Federal Reserve

• Securities and Exchange Commission

• Department of Treasury

• Financial Industry Regulatory Authority

What type of liabilities do both the 1933 and 1934 Acts provide for?

• No liabilities

• Only criminal liabilities

• Only civil liabilities

• Both civil and criminal liabilities

What is generally required from individuals transferring securities under these acts?

• No requirements

• Disclosure of certain information

• Approval from the SEC

• Payment of a transfer fee