Securities Act of 1933

1) Link to the Text of the Act
Read the statute (15 U.S.C. § 77a et seq.)

2) Why It Was Done
Passed in the wake of the 1929 stock market crash, the Act aimed to restore investor confidence by requiring transparency in the offer and sale of securities and preventing fraud.

3) Pre-existing Law or Constitutional Rights
Before 1933, securities offerings were regulated primarily at the state level (“blue sky laws”). The crash revealed the need for a strong federal disclosure regime.

Acts

Securities Exchange Act of 1934

1) Link to the Text of the Act
Read the statute (15 U.S.C. § 78a et seq.)

2) Why It Was Done
The Act created the Securities and Exchange Commission (SEC) and gave it authority to regulate securities markets, broker-dealers, and ongoing disclosures by public companies.

3) Pre-existing Law or Constitutional Rights
The Securities Act of 1933 regulated initial offerings but did not cover trading of securities after issuance. The 1934 Act filled this gap and established a permanent federal regulator.