What does the Securities Act of 1933 primarily require?

The Securities Act of 1933 primarily requires the disclosure of financial information to potential investors. This legislation was enacted in response to the stock market crash of 1929 and sought to restore investor confidence through transparency. The Act mandates that companies intending to offer securities to the public provide detailed information about their business operations, financial condition, and the risks associated with the investment. This information is typically included in a prospectus, which must be filed with the Securities and Exchange Commission (SEC) before any securities can be sold. The focus on disclosure helps to ensure that investors have access to essential information that enables them to make informed decisions, ultimately contributing to fair and efficient capital markets.