what is the securities act of 1933
The Securities Act of 1933 was enacted as a result of the market crash of 1929. It was the first major piece of federal legislation to apply to the sale of securities.The legislation was enacted as the need for more information within and about the securities markets was acknowledged.Prior to 1933, regulation of securities was chiefly governed by state laws. The Securities Act of 1933 is also known as the Truth in Securities Act..The 1933 Act was based on the idea that companies offering securities should provide potential investors with sufficient information about both the issuer and the securities to make an informed investment decision.he legislation was enacted as the need for more information within and about the securities markets was acknowledged. Prior to 1933, regulation of securities was chiefly governed by state laws. The Securities Act of 1933 is also known as the Truth in Securities Act..