With the boom and bust of the twenties and thirties, there developed a new legal concept-regulation of the sale and issuances of securities. It is an unfortunate comment upon the business ethics of some Americans that such laws were felt necessary. Nevertheless, such laws apply to the honest and the dishonest, and to the sophisticated as well as the credulous.
John W. Edmonds III,
The Securities Acts and (Hopefully) How to Avoid Them,
U. Rich. L. Rev.
Available at: http://scholarship.richmond.edu/lawreview/vol2/iss3/3