One of the cornerstones upon which the current financial regulatory system is based, often referred to as the truth in securities law. It requires that investors receive any significant or financial information about corporationsÂ’ securities offerings. It prohibits misrepresentations and fraud in the sale of securities. The law also requires issuers to file a registration statement with the Securities and Exchange Commission (SEC) that outlines the securities offering. Each registration statement has a prospectus, which contains information about the securities being offered. The registration statement also contains information about the cost of doing the offering, a description of current business initiatives, and an indemnification of directors and officers.