Business Law Newsletter

Regulation of Securities

“Securities” is a term that generally refers to shares of a corporation, promissory notes, and other liabilities. The laws regarding securities are very complex.

Securities are regulated by both federal and state laws. However, when state laws conflict with federal laws, the federal laws prevail. Both sets of laws usually require proper registration with an agency that regulates securities, such as the Securities and Exchange Commission (SEC).

The primary federal laws that regulate securities in the United States are the Securities Act of 1933 and the Securities Act of 1934. The former regulates the issuance of shares, while the latter regulates the trading of shares.

Securities Act of 1933

The focus of this Act is the initial money-raising phase of a corporation. Primarily, the 1933 Act requires certain disclosures and registrations, with exceptions.

Securities Act of 1934

The 1934 Act focuses upon the actual trading of shares within the market. Its purpose is to prevent fraud and insider trading. It is under this Act that stockbrokers are regulated.

State Securities Laws

States are permitted to regulate securities, as long as they don’t conflict with the federal laws. Most of these laws provide for registration and fraud prevention. State laws regulating securities are also called “Blue Sky” laws.

© 2025 NextClient.com, Inc. All rights reserved.

• The Reputation of a Business
  The “good will” of a business is an intangible asset, like the reputation, skill, or experience that is associated with the business. It also refers to the rate of recurring patronage that a business has developed over time... Read more.
• Franchisors Might be Liable for Franchisee Actions
  An increasing array of goods and services are offered through “franchises.” Franchising is not a new concept, but it has exploded in popularity; according to statistics compiled by Price Waterhouse Coopers in 2005 (the... Read more.
• State and Federal Regulation of Asbestos in the Workplace
  Asbestos is a fibrous material with high tensile strength and flexibility, widely used for its resistance to heat, chemicals and electricity. In the construction industry, asbestos is typically found in installed products such as pipe... Read more.
• Vicarious Liability for Employee Internet Use
  Many employers, recognizing the business advantages inherent in its use, regularly provide their employees with access to the Internet. Increased employee access, however, has resulted in increased employer liability. Employee misuse of... Read more.

• Ex-interpreter of MLB Star Shohei Ohtani Faces Sentencing After Attempting to Defraud Him of $16 Million
• Amazon Sued in Proposed Class Action Lawsuit for Secretly Tracking Users
• Ohio Files Lawsuit against Two Car Dealerships for Alleged Violations of Consumer Protection Laws
• Southern California Homeowner Sues Liberty Mutual for Denial of Insurance Policy Renewal Based on Allegedly False Reasons
• Transgender Advocate Groups File Lawsuit Against Trump's Military Ban