CHAPTER 3the legal frameworkWHAT YOUR LAWYER PROBABLY WON’T TELL YOU
To understand the law governing capital raising, it’s helpful to understand the history of these laws, known collectively as securities law.
The securities laws were adopted early in the twentieth century to protect regular folks from slick pitch artists who traveled across the country selling worthless investments. Kansas adopted the first securities law in 1911 to “keep ‘Kansas money in Kansas’ and help local farmers and small businesses rather than enriching ‘New York Stock Exchange speculators and gamblers.’”11
Other states followed suit, and eventually the federal government adopted its own securities laws starting in 1933.
The primary purpose of these laws is to protect ...
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