Your Ask Joey ™ Answer

What is the difference between the 1933 Securities Act and the 1934 Securities Act?

The key difference is that the SEC Act of 1933 focuses on guidance for newly issued securities while the SEC Act of 1934 provides guidance for actively traded securities.

The 1933 Securities Act: The 1933 Securities Act requires that publicly traded organization that offer securities to the general public in either primary or secondary markets file a registration statement. Furthermore, this act requires that each investor is provided with a proxy statement prior to each shareholder meeting. A company that intends to sell securities in offerings to the general public will be required to register all offered securities with the Securities and Exchange Commission (SEC). Registration requires widespread disclosures about the company, in addition to management. Additionally, the company should disclose what it intends to do with the proceeds from the securities issuance (growth strategies etc.)

The 1934 Securities Act: The 1934 Securities Act provides guidance on securities that are being traded subsequent to their issuance. This act will also provide requirements for periodic reporting and disclosures to the general public.

Back To All Questions

You might also be interested in...

  • What is regulation S-X?

    Regulation S-X governs both the form and content of the financial statements and the financial statement disclosures. The visual below outlines what is required under Regulation S-X for the annual financial statements (10-K) and interim financial statements (10-Q).

  • What is regulation S-K?

    Regulation S-K governs the form and content of all nonfinancial statement related disclosures that are related to the financial statements. The visual below outlines the key nonfinancial disclosures that are required.

  • What is the difference between Regulation S-X and Regulation S-K?

    The key difference is that Regulation S-X focuses on financial information while Regulation S-K focuses on nonfinancial information. The two visuals below outline what is required under each regulation: