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Overview of Federal Securities Laws

Securities transactions are subject to regulation under both federal and state law. Since the federal securities laws are based on Congress' power to regulate interstate commerce, they generally apply only to transactions involving "the use of any means or instruments of transportation or communication in interstate commerce or of the mails." The courts have been willing to find the requisite use of interstate commerce facilities in doubtful situations. Use of the mails to accomplish any part of the transaction, including payment or confirmation after a sale, is sufficient to support federal jurisdiction. See, e.g., Franklin v. Levy, 551 F.2d 521 (2d Cir. 1977). An intrastate telephone call has also been held to involve the use of interstate facilities.See, e.g., Dupuy v. Dupuy, 511 F. 2d 641 (5th Cir. 1975).  

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