Certified Fraud Examiner 2025 – 400 Free Practice Questions to Pass the Exam

The U.S. Securities Act of 1933 and the U.S. Securities Exchange Act of 1934 are crucial pieces of legislation that primarily regulate the issuance and trading of securities. The Securities Act of 1933 focuses on the initial sale of securities to the public, requiring companies to provide full and fair disclosure about the investment offerings through registration statements and prospectuses. This is designed to protect investors by ensuring they have access to essential information before making investment decisions.

On the other hand, the Securities Exchange Act of 1934 governs the trading of those securities once they are on the market, overseeing the activities of securities exchanges and brokers. It established the Securities and Exchange Commission (SEC) to enforce these regulations and provide oversight of securities transactions, ensuring fair pricing, preventing fraud, and maintaining market stability.

Together, these acts create a regulatory framework aimed at enhancing transparency and protecting investors in the U.S. securities markets. The focus on securities distinguishes these acts from other regulatory areas such as public health, consumer safety, or telecommunications.