Discuss the Securities and Exchange Act of 1933 and the Securities and Exchange Act of 1934. What is the significance of these laws in terms of what a corporation must report before issuing stock to the public?© BrainMass Inc. brainmass.com October 2, 2020, 5:13 am ad1c9bdddf
The Securities and Exchange Act of 1933 was passed due to the Stock Market Crash of 1929. This Act requires that the issuer reveal any information to allow the purchaser the ability to make a reasonable decision as to whether to invest or not. The information is to be reliable but that does not always occur. Some information may be revealed, while other information may be vague. Disclosure is accomplished by the registering ...
This solution defines the significance of the Securities and Exchange Act of 1933 and the Securities and Exchange Act of 1934 and explains the legal requirements for public reporting that must be met prior to the issuance of stock to the public.