6.4. Overview of the Securities Act’s Anti-Fraud Provisions

Because the Securities Act set the basic ground rules for securities regulation, parts of it are worded very broadly. Among these are two very broad anti-fraud provisions. First, the Act makes it unlawful in the offer or sale of any securities to:

• Employ any device, scheme, or artifice to defraud

• Profit by means of an untrue statement or omission of material fact made at or before the time of purchase

• Engage in any transaction or a