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13 Cards in this Set
- Front
- Back
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Securities act of 1933 |
Regulate the issuance of new securities. |
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Securities Exchange Act of 1934 |
Regulates companies with publicly traded securities. |
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SEC creates law in three different ways: |
Rules, Releases, No Action Letters. |
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Security |
Any transaction in which the buyer invests money in a common enterprise and expects to earn a profit predominantly from the efforts of others. |
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The 1933 Act requires that before offering or selling securities, |
the issuer must register the securities with the SEC unless the securities qualify for an exemption. |
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Issuer |
A company that sells its own stock. |
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When an issuer registers securities, the SEC does not |
investigate the quality of the offering. |
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1933 Act exempts some types of securities from registration because they |
are inherently low risk, are regulated by other statues, are not really investments. |
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Securities exempt from registration include |
Government securities, bank securities, Short Term Notes, Nonprofit issues, Insurance policies and annuity contracts. |
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Section 4(2) of the 1933 Act exempts from Registration |
"Transactions by an issuer not involving any public offering." |
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Exempt securities are always |
exempt , throughout their lives, no matter how many times they are sold. |
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Exempt transaction is |
only exempt that one time. |
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Three types of private offerings |
-intrastate, regulation D, and Regulation A. |
