Securities Law

Securities law and attorneys who specialize in it have to do with the stocks and bonds offered by companies and the manner in which they are traded in. There are certain rules that must be followed when dealing in this type of business. A series of statutes known as the Federal Securities Laws make up the regulations set in place and they are enforced by the United States Securities and Exchange Commission (SEC). These laws are there to protect companies and investors alike from fraudulent acts committed through illegal trading on the stock market.

Both federal and state laws pertain to securities trading. The SEC generally regulates all federal trading as mandated by the Securities Exchange Act of 1934. This act demands registration with the SEC of issuers (including brokerage and investment firms) if they want to trade stocks nationally. A variety of reports must be completed and filed with the SEC by issuers registered under this act so they can offer the public the appropriate facts about corporations that trade publicly on the stock market.

For protection of defrauded investors on the state level, what is known as the "Blue Sky Laws" (or the Uniform Securities Act) have been set in place. These vary by region, but most are generally the same. Most states have adopted the majority of the Uniform Securities Act. Prohibition against deceit in securities sales is a major aspect of these laws. Other components that make up the Uniform Securities Act include requirements for the registration of brokers and dealers, sanctions and civil liability.

Related Information:

Securities Fraud
Find out how to get the securities fraud help you need.

Auction Rate Securities
Auction rate securities require professional guidance and intensive industry knowledge.