Which securities law regulates the initial issuance of securities in the primary market?

The Securities Act of 1933 is the law that regulates the initial issuance of securities in the primary market. This act was designed to ensure transparency and fairness in the securities market by requiring issuers to provide full disclosure about their financial health and potential risks before offering their securities to the public.

The primary focus of the Act is to require registration of securities with the Securities and Exchange Commission (SEC) and to provide investors with essential information through a prospectus. This helps protect investors and promotes informed decision-making when they purchase newly issued securities. By requiring disclosures, the Act aims to reduce fraud and misrepresentation in the sale of securities.

The other laws mentioned serve different purposes. For instance, the Sarbanes-Oxley Act of 2002 focuses on corporate governance and accountability, particularly after major accounting scandals. The Securities Exchange Act of 1934 governs the secondary market, dealing with the trading of previously issued securities. The Private Securities Litigation Reform Act of 1995 seeks to address lawsuits related to securities fraud rather than the issuance of securities itself.