Federal Securities Act
Was the first major federal legislation to regulate the sale of securities (tradable financial assets)
Real World Example
The Federal Securities Act was an important part of President Franklin D. Roosevelt's New Deal, aiming to restore trust in the stock market after the 1929 crash. It required companies to provide truthful information about their financial health, protecting investors from fraud and deception. This highlighted the ongoing tension between government regulation and free-market operations, a debate that continues as we discuss how much oversight is necessary today. For an average person, this act's legacy means that when they invest in stocks or mutual funds, they can access honest information to make informed decisions. This transparency helps safeguard individual savings, ensuring that people's investments are more secure and reliable.
