In Georgia, investors have rights and protections under many laws and regulations.
The Georgia Uniform Securities Act (GUSA) is a state law that regulates the offer and sale of securities in Georgia. The GUSA is modeled after the Uniform Securities Act (USA), which is a model law adopted by many states.
The GUSA defines a security as "any note, stock, bond, debenture, evidence of indebtedness, certificate of interest or participation in any profit-sharing agreement, investment contract, or any other investment security, or any interest or instrument commonly known as a security."
The GUSA requires that all securities offered or sold in Georgia be registered with the Georgia Secretary of State (SOS), unless an exemption applies. The exemptions are designed to allow for the sale of securities without registration in certain limited circumstances, such as when the securities are offered to a small number of investors or when they are offered through an established securities exchange.
The GUSA also prohibits certain fraudulent and deceptive practices in connection with the sale of securities. These prohibited practices include making false or misleading statements about a security, omitting material information about a security, and engaging in manipulative or deceptive trading practices.
The SOS is responsible for enforcing the GUSA. The SOS has the authority to investigate violations of the Act, to bring civil and criminal actions against violators, and to revoke the registration of securities professionals.
Here are some of the key provisions of the GUSA:
Securities must be registered with the SOS before they can be offered or sold in Georgia.
There are a number of exemptions from registration, such as for securities offered to a small number of investors or through an established securities exchange.
Fraudulent and deceptive practices in connection with the sale of securities are prohibited.
The SOS is responsible for enforcing the GUSA.
If you are considering investing in a security, you should consult with an attorney to make sure that you understand your rights and obligations under the GUSA.
Here are some additional resources that you may find helpful:
Georgia Secretary of State: https://sos.ga.gov/
In addition to the Georgia Uniform Securities Act, the following federal laws prodvide investor protections:
Contact our law firm to discuss your rights and option for recovering investment losses under state and federal securities law.