What is the Securities Act of 1933 Clause?


The Securities Act of 1933 is a federal law that regulates the sale of securities, including stocks, bonds, and other financial instruments. The act requires that securities be registered with the Securities and Exchange Commission (SEC) and that certain disclosures be made to investors. The Securities Act of 1933 clause is a statement that appears on stock certificates and other securities documents that refers to the provisions of the act and indicates that the securities are being offered and sold in compliance with the act.

There are a number of reasons why you might want to consider having the Securities Act of 1933 clause printed on your stock certificates:

  1. Compliance: Including the Securities Act of 1933 clause on your stock certificates can help demonstrate that your securities are being offered and sold in compliance with the act and its requirements. This can be important if you are selling securities to the public or if you are required to register your securities with the SEC.

  2. Transparency: The Securities Act of 1933 requires that certain disclosures be made to investors, and including the act's clause on your stock certificates can help make these disclosures more transparent. This can help build trust and credibility with your investors.

  3. Legal protection: Including the Securities Act of 1933 clause on your stock certificates can also provide some legal protection for you and your company in the event that there are any issues or disputes related to the securities. It can help demonstrate that you have taken steps to comply with the act and its requirements.

It's important to note that while including the Securities Act of 1933 clause on your stock certificates can be beneficial, it is not a substitute for complying with the act and its requirements. You should consult with an attorney or other legal professional to determine whether it is appropriate to include the clause on your certificates and how to go about doing so. If you decide to include the clause, request that Mark's Corpex print it on your certificates.