Franklin D. Roosevelt photo

White House Statement on Securities Legislation.

March 29, 1933

The plan is to protect the public by informing the investor, by requiring the issuer to lodge with the Federal Trade Commission information which must be true, before the securities can be offered for sale in interstate commerce, and by providing that otherwise the issuer will subject himself to a criminal penalty. It requires all advertisements for the sale of such securities in interstate commerce to carry definite informative facts that will put the purchaser on notice. It changes the ancient doctrine of caveat emptor to "let the seller beware," and puts the burden on the seller rather than on the buyer. It should give a great impetus to honest dealing in securities and bring back public confidence in the sale of securities.

Franklin D. Roosevelt, White House Statement on Securities Legislation. Online by Gerhard Peters and John T. Woolley, The American Presidency Project https://www.presidency.ucsb.edu/node/207998

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