Learn About Your Rights from an Experienced Securities Lawyer
As an investor, there are several laws that protect you. These securities laws require companies to disclose the information you need to make informed investment decisions, require brokers and advisors to put your interests first, and impose both civil and criminal penalties for investment fraud.
They also allow you to take legal action when you fall victim to fraud.
Even if a company, broker or advisor faces civil or criminal penalties, this doesn’t mean that you will recover your fraudulent investment losses. To recover your losses, you must file a claim in FINRA arbitration or in court. An experienced securities lawyer can assert your legal rights on your behalf, and your lawyer can help ensure that you fully leverage the statutory protections that are available.
Securities Laws that Protect U.S. Investors
What are the laws that protect you? Here is an overview of the primary securities laws that protect investors in the United States:
Securities Act of 1933
Despite being nearly a century old, the Securities Act of 1933 is still one of the primary laws that protects U.S. investors. The Securities Act of 1933 requires that companies disclose material information to prospective investors before selling securities, and it prohibits fraud in the securities market.
Securities Exchange Act of 1934
The Securities Exchange Act of 1934 enhanced the disclosure requirements for companies that issue securities. It also established licensing and other requirements for securities broker-dealers.
Trust Indenture Act of 1939
The Trust Indenture Act of 1939 regulates the sale of municipal securities—including municipal bonds issued by states, cities and other governmental subdivisions and entities. It imposes disclosure requirements for municipal securities issuers similar to those that apply to companies under the Securities Act of 1933 and the Securities Exchange Act of 1934.
Investment Company Act of 1940
While the Investment Company Act of 1940 serves several purposes, one of its most important functions is regulating mutual funds. It requires registration of mutual funds (and other investment companies), and it also mandates that investors receive the information they need to make informed investment decisions.
Sarbanes-Oxley Act of 2002
Passed in the wake of the Enron scandal, the Sarbanes-Oxley Act of 2002 (commonly known as “SOX”) imposed enhanced financial and management disclosure requirements for corporations that sell their securities to the public. It also established enhanced penalties for corporate fraud.
Blue Sky Laws
Blue Sky laws are state securities laws that establish additional requirements for securities issuers and provide additional protections to investors. Among other things, blue sky laws typically require state-level registration (in addition to federal registration with the SEC) and mandate certain disclosures. Many blue sky laws establish requirements for securities broker-dealers as well.
Speak with a Securities Lawyer at Zamansky LLC
Do you need to know more about your legal rights as an investor? If so, we invite you to get in touch. To request a free and confidential consultation with a securities lawyer at Zamansky LLC, please call 212-742-1414 or send us a message online today.