Consumer Law at Your Fingertips
Wisconsin Statutes chapter 551 prohibits the sale of stocks, bonds or other “securities” unless the security is registered with the Wisconsin Department of Financial Institutions (DFI).
- The registration requirement does not apply to securities exempted by state or federal law.
- The registration process focuses on “full disclosure.” In some cases, filing requirements are minimal. In other cases, the registrant must file a disclosure document, typically called a “prospectus” or “offering circular.” Regardless of the applicable filing requirements (and even if there are none), the law requires sellers to disclose material facts to prospective investors.
- A person may not engage in any deceptive or fraudulent practice in connection with the offer, sale or purchase of a security. DFI may suspend or revoke a security registration for law violations, including fraudulent practices.
- Law violators may be prosecuted, and there are private remedies for injured buyers.