Full Disclosure refers to the obligation to release all material information pertinent to a transaction, especially in the context of securities where public information requirements are regulated.
The Securities Exchange Act of 1934 is a landmark piece of legislation that governs the securities markets in the United States. Enacted on June 6, 1934, this act was designed to regulate and oversee the secondary trading of securities (stocks, bonds, and debentures) to ensure fairness and transparency in financial markets. The act explicitly outlaws misrepresentation, fraud, manipulation, and other abusive practices related to the issuance and trading of securities. To enforce the provisions of both the Securities Act of 1933 and the Securities Exchange Act of 1934, the legislation established the Securities and Exchange Commission (SEC).
