View Section 5 Securities Act Of 1933 Images. Section 1 — short title. The securities act of 1933, also known as the 1933 act, the securities act, the truth in securities act, the federal securities act, and the '33 act.
The 1933 act was based on the idea that companies offering securities should provide potential investors with sufficient information about both the issuer and the securities to make an informed investment decision. The securities act of 1933 was the first major federal securities law passed following the crash of 1929 and was congress' initial effort to control securities fraud. According to the securities and exchange commission, the securities act of 1933 was the first major federal legislation to regulate securities.
The act required companies to register with the securities and exchange commission.
The securities act of 1933 is governed by the securities and exchange commission, which was created a year later by the securities exchange act of 1934. Congress primarily targeted the issuers of securities. This law applies to its own. Securities and exchange commission had only previously, weakly enforced registration of foreign transactions, and only had limited constitutional authority to do so.