15 U.S.C. § 77w — Unlawful representations

submitted 93 years ago by ch. 38 to r/title-15-COMMERCE-AND-TRADE · 116 words · no verdicts yet

in plain englishAI-generated · not legal advice

A registration statement being filed or in effect doesn't mean the SEC found it accurate or complete. It also doesn't mean the SEC approved the security or judged its merits. Telling a buyer otherwise is against the law.

The fact that a registration statement for a security has been filed, or is currently in effect, is not the SEC saying that statement is true, accurate, and complete on its face. It doesn't mean the SEC found no untrue statement or missing material fact in it. The same goes for a security with no active "stop order" against it — that isn't the SEC vouching for it either. None of this means the SEC has reviewed or approved the merits of the security. It is against the law to tell a prospective buyer anything that contradicts these points.

the actual law source: uscode.house.gov ↗public domain

Neither the fact that the registration statement for a security has been filed or is in effect nor the fact that a stop order is not in effect with respect thereto shall be deemed a finding by the Commission that the registration statement is true and accurate on its face or that it does not contain an untrue statement of fact or omit to state a material fact, or be held to mean that the Commission has in any way passed upon the merits of, or given approval to, such security. It shall be unlawful to make, or cause to be made to any prospective purchaser any representation contrary to the foregoing provisions of this section.

Source credit: (May 27, 1933, ch. 38, title I, § 23, 48 Stat. 87.)

history & why it existsrecord from the source credit

1933Enacted · Act of May 27, 1933, ch. 38 · 48 Stat. 87

A history note hasn’t been published yet. The record shows enactment by ch. 38 on 1933-05-27.

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