1933 Securities Act Essay Example | Topics and Well Written Essays - 500 words

1933 Securities Act - Essay ExampleGenerally, the Act was enacted due to the realization that more education was required about and within the securities market. In this case, the Act addressed requirements in the securities market to enhance apocalypse by requiring all companies in the U.S. to seek registration with the Securities and Exchange Commission before beginning their trading operations (Hecker, 2014). This registration was meant to ensure that companies gave potential investors and the Securities and Exchange Commission with relevant information, specifically through registration statements and prospectus.However, below the Securities Act of 1933, specific securities argon exempted from these registration requirements. These exempt securities either come from other government regulatory agencies with a form of jurisdiction over the securities issuers, or from issuers with a high credit worthiness level. These securities imply municipal bonds such as local government b onds, securities issued by federal agencies or the United States government, and securities issued by credit unions, savings institutions, and banks (OConnor, 2014). In addition, other exempt securities include public utility bonds or stocks, fit(p) annuities and insurance policies, and securities issued by non-profit, educational, and religious organizations. Finally, bankers acceptances, bills of exchange, notes, and commercial papers with initial maturity periods of less than 270 days are also included under exempt securities.