Securities Act of 1933
A term to know.
The first expansive law regulating the issuance of securities, passed in 1933 and codified in 15 U.S.C. Sec. 77a et seq. Enacted following the stock market crash of 1929 and the Great Depression, this law requires that any offer or sale of securities using the means and instrumentalities of interstate commerce be registered, absent an exemption from registration. This act is designed to regulate the "primary markets," that is, the market between the issuing company and the initial purchaser. The Securities Act was followed by the Exchange Act, which was designed to regulate the secondary marketplace for the re-sale of securities.