South Florida Arbitration & Litigation Lawyer Blog
The Securities Act of 1933 and The Securities and Exchange Act of 1934 – South Florida, Fort Lauderdale, Hollywood, Davie, Boynton Beach, Boca Raton, Lake Worth and West Palm Beach, Federal and State Court Litigation and Arbitration Attorney:
The Federal Securities Laws:
The purpose of this post is to provide the reader with general information concerning the Securities Act of 1933 and the Securities and Exchange Act of 1934. This information is being provided for educational purposes only. It is not designed to be complete in all material respects. Thus, it should not be relied upon for legal or investment advice. If you have any questions concerning the contents of this post, you should contact a qualified legal or investment professional.
In the chaotic securities markets of the 1920’s, companies often sold stocks and bonds on the basis of glittering promises of fantastic profits – without disclosing any meaningful information to investors. These conditions contributed to the disastrous Stock Market Crash of 1929. In response, the U.S. Congress enacted the federal securities laws and created the Securities and Exchange Commission (SEC) to administer them.
There are two primary sets of federal laws that come into play when a company wants to offer and sell its securities. They are: the Securities Act of 1933 (Securities Act), and the Securities Exchange Act of 1934 (Exchange Act).
Securities Act: The Securities Act generally requires companies to give investors “full disclosure” of all “material facts,” the facts investors would find important in making an investment decision. This Act also requires companies to file a registration statement with the SEC that includes information for investors. The SEC does not evaluate the merits of offerings, or determine if the securities are “good” investments.
Exchange Act: The Exchange Act requires publically held companies to disclose information continually about their business operations, financial conditions, and managements. These companies, and in many cases their officers, directors and significant shareholders, must file periodic reports or other disclosure documents to the SEC. In some cases, the company must deliver the information directly to investors.
Each one of these statutes have built in to them various protections for investors, which allow investors to institute claims directly against wrongdoers. If you believe that some type of securities fraud or misrepresentation has been perpetrated upon you, please contact us for you free consultation.
With extensive courtroom, arbitration and mediation experience and an in-depth understanding of securities law, our firm provides all of our clients with the personal service they deserve. Handling cases worth $25,000 or more, we represent clients throughout Florida and across the United States, as well as for foreign individuals that invested in U.S. banks or brokerage firms. Contact us to arrange your free initial consultation.
At the Boca Rato, Florida Law Office of Russell L. Forkey, we represent clients throughout South and Central Florida, including Fort Lauderdale, West Palm Beach, Boca Raton, Sunrise, Plantation, Coral Springs, Deerfield Beach, Pompano Beach, Delray, Boynton Beach, Hollywood, Lake Worth, Royal Palm Beach, Manalapan, Jupiter, Gulf Stream, Wellington, Fort Pierce, Stuart, Palm City, Jupiter, Miami, Orlando, Maitland, Winter Park, Altamonte Springs, Lake Mary, Heathrow, Melbourne, Palm Bay, Cocoa Beach, Vero Beach, Daytona Beach, Deland, New Smyrna Beach, Ormand Beach, Broward County, Palm Beach County, Dade County, Orange County, Seminole County, Martin County, Brevard County, Indian River County, Volusia County and Monroe County, Florida. The law office of Russell L. Forkey also represents South American, Canadian and other foreign residents that do business with U.S. financial institutions, investment advisors, brokerage and precious metal firms.