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As this name suggests, the 1933 act focuses on disclosure, specifically requiring companies offering securities, such as stocks or bonds for public sale, to provide truthful information about these securities and the risks associated with investing in them.
Often referred to as the truth in securities law, the Securities Act of 1933 has two basic objectives: require that investors receive financial and other significant information concerning securities being offered for public sale; and. prohibit deceit, misrepresentations, and other fraud in the sale of securities.
The SEC also requires companies to make certain nonpublic, SEC-only disclosures, which allow the SEC to monitor risks and inform certain research while keeping the information confidential.
The Securities Exchange Act requires disclosure of important information by anyone seeking to acquire more than 5 percent of a companys securities by direct purchase or tender offer . Such an offer often is extended in an effort to gain control of the company.
To protect investors, Congress crafted a mandatory disclosure process designed to force companies to disclose information that investors would find pertinent to making investment decisions. In addition, the Exchange Act regulates the exchanges on which securities are sold.

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The Securities and Exchange Commission (SEC) oversees securities exchanges, securities brokers and dealers, investment advisors, and mutual funds in an effort to promote fair dealing, the disclosure of important market information, and to prevent fraud.
Full disclosure prevents agents with inside information in the market from misusing it for personal gain and profit. It also prevents the chance of window dressing and manipulation of accounts, thereby further increasing transparency in the market.

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