An Introduction to Securities Law

In the video, the presenter introduces viewers to the basics of securities law. The video is short and focuses mainly on the primary aims and underlying principle of laws that are designed to make transparent the transfer of certain financial holdings.

What are securities laws? They consist of a body of federal and state law that governs the sale or transfer of beneficial interest or ownership interest in a business entity. The primary securities laws are the federal Security Exchange Act of 1933 and the Security Exchange Act of 1934 as well as a robust body of state laws.


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The first securities laws were passed in the wake of the financial crash of 1929. These laws were meant to counter the many abuses of the financial industry that many believed were responsible for the crash.

The purpose of securities law is to protect the seller or recipient from fraud or deceptive practices. It does this primarily through disclosure. The holder of securities has specific disclosure requirements whenever they intend to make a transfer. Laws are designed to compel holders of securities to provide as much information as possible about the financial holdings they are trying to sell. Armed with this knowledge, the recipient will be able to make an informed decision.

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