The Securities Act of 1933 regulates securities by mandated disclosure rather than by prohibition

Evidence

Regulation also may be married to an information service to produce compulsory pablicity. The principle of regulation by publicity, for example, was at the heart of the Securities Act of 1933, as it is of many another statute. Questions of sales of securities governed by the Act were left to be settled by the processes of interplay of abilities among issuers and investors, but only after the issuers had made available to the investors certain prescribed kinds of information. This method of control, effectuated by the device of a prerequisite of registration, should be compared with the characteristic method of the common law for dealing with the same problem by means of a self-aplying prohibition, enforced by a private right of action for deceit or misrepresentation, and a self-arplying limitation of private power, enforced by a right of action for rescission. — Henry M. Hart, Jr. and Albert M. Sacks, The Legal Process, 868

Categorization

• XREF: Connects to the prior-approval/prerequisite discussion from ch10 claims about licensing and registration mechanisms. — connects to: A standard of identity can serve as a private anticompetitive weapon — Henry M. Hart, Jr. and Albert M. Sacks, The Legal Process: Basic Problems in…, 1517