What act is referred to as the "truth in securities" act?

The term "truth in securities" refers specifically to the Securities Act of 1933. This landmark legislation was enacted primarily to ensure transparency in the securities market and to protect investors from fraud. The act requires that all securities sold to the public must be registered with the Securities and Exchange Commission (SEC) and mandates full disclosure of all material information regarding the securities being offered. This includes details about the company, its financial condition, and the risks associated with the investment.

The goal of the Securities Act of 1933 is to promote informed decision-making by providing investors with the necessary information to evaluate the potential risks and rewards of their investments. This emphasis on transparency and honesty in the securities market is why it is often referred to as the "truth in securities" act. The act laid the groundwork for modern securities regulation and has had a lasting impact on the way financial markets operate today.