Skip to main content

Lapse in Appropriations

Please note that a lapse in appropriations has caused GAO to shut down its operations. Therefore, GAO will not be able to publish reports or otherwise update this website until GAO resumes operations. In addition, the vast majority of GAO personnel are not permitted to work. Consequently, calls or emails to agency personnel may not be returned until GAO resumes operations. For details on how the bid protest process will be handled during the shutdown, please see the legal decisions page. For information related to the GAO Personnel Appeals Board (PAB), please see the PAB webpage.

Action Needed To Better Protect Investors From Fraud in Purchasing Privately Placed Securities

FGMSD-80-56 Published: May 14, 1980. Publicly Released: May 14, 1980.
Jump To:

Highlights

Under the Securities Act of 1933, a securities issue must be registered with the Securities and Exchange Commission (SEC) unless the issue is exempt from registration. Section 4(2) of the Act, the private placement exemption for issues sold to investors in private transactions, states that registration requirements shall not apply to "transactions by an issuer not involving any public offering." In its study, GAO reviewed the legislative history of the Act, SEC rules and releases, and court decisions regarding the private placement exemption. Information on violations of the private placement exemption was obtained from 142 investigations conducted by the SEC during a 3-year period ending September 30, 1978.

Full Report

Full Report (42 pages)

Media Inquiries

Sarah Kaczmarek
Managing Director
Office of Public Affairs
media@gao.gov

Public Inquiries

Contact Us

Topics

Financial Markets and Institutions
Federal legislationFinancial disclosureFraudInformation disclosureInvestigations by federal agenciesInvestmentsLossesProgram abusesSecurities fraudSecurities regulation