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Why do you think that the Securities Exchange Act of 1933 was passed? Who does it protect?


How is it regulated?

That particular law I makes it a crime to withhold pertinent information concerning the value of a security. It is supposed to protect the purchaser and the "non-insider seller" of a security. It makes it a crime to "materially trump up" a publically traded coporation's net worth or omitt facts when such an ommission would have the same effect. It keeps an "insider" from being able to with hold information that would indicate that the value of a security is going to go up when negotiating to buy a security from someone who would not have that information.

It's supposed to protect investors, but Republicans have knack for watering it down. Insider trading and speculation continues to this day because Republicans abhor regulation.

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