TAILIEUCHUNG - ILLINOIS SECURITIES LAW OF 1953

The market prices of bank securities, such as equities, provide important in- formation for market participants, for central banks with Önancial stability re- sponsibilities, and for bank supervisors, from at least Öve di§erent perspectives. First, a bankí s equity price may e§ectively summarise all the public informa- tion available from the bank, including potential risks, in one number. Second, when working under the e¢ cient-market hypothesis, banksísecurities prices at any point in time have a forward looking component in that they incorporate expectations of both positive and negative future earnings prospects. Third, the banksíshare price information is available at much higher frequency compared with accounting information. Fourth, as Önancial. | ILLINOIS SECURITIES LAW OF 1953 815 ILCS 5 1 Effective January 1 1954 As amended through August 21 2003 Illinois Securities Department X_ __ JESSE WHITE Secretary of State I am pleased to provide this booklet on the Illinois Securities Law of 1953 including amendments through Aug. 21 law governs the offer and sale of securities in Illinois as well as broker-dealers salespersons investment advisers and investment adviser Secretary of State Illinois Securities Department is responsible for administering this law and pursuing enforcement actions against violators. New amendments signed into law in August 2003 provide greater protection to people who invest their hard-earned money and all too often find they are victims of unscrupulous amendments target individuals who use false financial statements to induce people to invest their money. They also make it a violation for employees of brokers and advisers to engage in unethical behavior and to fail to maintain records and documents required by law. In addition the amendments allow the appointment of special agents to exercise police powers against those committing financial crimes and also strengthen the chances of returning investor assets to defrauded investors by including a seizure and forfeiture provision. My office is committed to protecting the investing public and I welcome the additional protections provided by PA 93-580. I sincerely thank all those who helped draft the Act as well as those members of the General Assembly who assisted in the legislative process. Jesse White Secretary of State THE ILLINOIS SECURITIES LAW OF 1953 Amended through August 21 2003 Page Controlling Sale or Offer .2 Registered Principal of a dealer . 3 Registered .

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