Securities Law - Explained

The video provides an overview of securities laws in the U.S. It begins by defining securities as negotiable instruments representing value from equity, debt, or hybrid instruments. The broadest category is investment contracts, where buyers expect profits from others' activities. The video then covers major federal laws, including the 1933 Act, which mandates disclosure procedures, and the 1934 Act, which established the SEC to regulate securities trading. It also touches on state-level securities laws, known as Sunshine laws, designed to protect investors from fraudulent schemes.

What is the broadest category of what falls under a security?

• Hybrid instruments

• Equity shares

• Debt instruments

• Investment contracts

Which federal law was the first to control the sale of securities?

• The Investment Company Act

• The 1934 Act

• The 1933 Act

• The Securities Exchange Act

What is the primary role of the Securities and Exchange Commission (SEC)?

• To issue securities

• To regulate the sale and trading of securities

• To manage investment portfolios

• To create state-level securities laws

What are state-level securities laws commonly known as?

• Blue Sky laws

• Sunshine laws

• Federal laws

• Investment laws

What was the purpose of the Sunshine laws?

• To encourage state-level investments

• To regulate federal securities

• To protect investors from fraudulent schemes

• To promote investment in securities