Show I I I I I I I i I I I I I Federal Securities Act I Gives Buyers a Chance I President Roosevelt's Federal Securities Act now a law was not designed to protect prote t lambs from Wall Street bulls and bears nor even from sharks and wolves The person who gambles on the the market or who buys stock and bonds as an investment without investigating what is behind them may still go broke What the act does do is to permit an an Investor to buy with his eyes open and to have redress in case he has been duped into buying worthless securities It assures him that he can secure from the Federal Trade Commission facts as to the actual financial conditI condit condit- I condIt-I ion of a corporation issuing securities sec sec- sec sec- unties together with full data as asI asto to the method of issuing them I All stocks bonds debentures and other securities must be registered reg reg- registered reg-I reg with the government and andi I detailed information furnished asto as asto to who is back of them and what I they represent and these statements state statements statements I ments must be certified by all allI the Issuing company's officers officers' and three fourths of the direct directors II ors who no longer can lend their names to schemes without assuming responsibility In case of foreign bonds their purpose marketing methods issuing is issuing issuing is- is suing costs and the past financial financial finan finan- cial record of the Issuer must be furnished No longer will companies on I the verge of receivership be able to write glowing accounts of their safety enticing suckers to Invest their savings in sinking ships A complete financial statement statement statement stat stat- ement is required from all desiring desirIng desiring desir desir- ing to register stocks and bonds and if the is insolvent or has been engaged in previous fraudulent transactions and misrepresentations misrepresentations mis min representations in advertising the registration will be revoked But while the government will require registration of securities and this information will be av to the public the govern government government government ment does not guarantee the securities securities securities sec sec- so registered nor does the registration even signify ap ap- The buyer will have thereal the thereal thereal real facts available but he will still have to use his own judg judg- ment menta |