The Securities Act of 1934 regulates the trading of securities after their initial issuance and it requires plaintiffs to prove fraud or gross negligence.

Question

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The Securities Act of 1934 does regulate the trading of securities after their initial issuance and it also requires plaintiffs to prove fraud or gross negligence. This is different from the Securities Act of 1933 which regulates the initial issuance of securities and imposes strict liability on issuers for material misstatements or omissions.

The Securities Act of 1934 Regulates the Trading of Securities