Series 22: Chapter Four

Chapter Four

Offering Practices of Direct Participation Programs

When offering new securities for sale, most issuers must register the new securities with the SEC. The Securities Act of 1933 was enacted to ensure that investors have enough information about a security to make an informed decision. It requires companies to file a registration statement that includes enough detailed information about the issuer of the security for investors to make an informed investment decision about the investment. When judging whether a registration statement is acceptable, the SEC assesses whether it contains all the relevant information, without material omissions. It does not