What are three key aspects of securities regulation?
The three core objectives of securities regulation are: The protection of investors; • Ensuring that markets are fair, efficient and transparent; • The reduction of systemic risk.
Who does the Securities Act apply to?
In reality, due to a number of exemptions (for trading on the secondary market and small offerings), the Act is mainly applied to primary market offerings by issuers. Under Section 5 of the Securities Act, all issuers must register non-exempt securities with the Securities and Exchange Commission (SEC).
What are the SEC regulations?
Rules and Regulations for the Securities and Exchange Commission and Major Securities Laws
|Securities and Exchange Commission Rules and Regulations|
|Part 200||Organization; Conduct and Ethics; and Information and Requests|
|Part 274||e-CFR Forms Listing PDF Versions of SEC Forms|
|Investment Advisers Act of 1940|
What two types of securities must be registered under the 1934 Act?
Primary requirements include registration of any securities listed on stock exchanges, disclosure, proxy solicitations, and margin and audit requirements. The purpose of these requirements is to ensure an environment of fairness and investor confidence.
Why do we need securities laws?
securities law: an overview. Securities law exists because of unique informational needs of investors. Securities are not inherently valuable; their worth comes only from the claims they entitle their owner to make upon the assets and earnings of the issuer or the voting power that accompanies such claims.
What does the Securities Act of 1933 govern?
Often referred to as the “truth in securities” law, the Securities Act of 1933 has two basic objectives: require that investors receive financial and other significant information concerning securities being offered for public sale; and. prohibit deceit, misrepresentations, and other fraud in the sale of securities.
Who administered the Securities Act of 1933?
It was originally enforced by the FTC, until the SEC was created by the Securities Exchange Act of 1934. The original law was separated into two titles. Title I is formally entitled the Securities Act of 1933, while title 2 is the Corporation of Foreign Bondholders Act, 1933.
Which of the following securities are required to be registered under the Securities Act of 1933?
U.S. Government Bond Trusts are an investment company whose shares (actually, these are termed “units”) must be registered with the SEC under the Securities Act of 1933. Government bonds, municipal bonds, and Small Business Investment Company issues are all exempt securities under the 1933 Act.
What is the primary purpose of the SEC?
The mission of the SEC is to protect investors; maintain fair, orderly, and efficient markets; and facilitate capital formation. The SEC strives to promote a market environment that is worthy of the public’s trust.
What does the SEC require from public companies?
SEC rules require your company to file annual reports on Form 10-K and quarterly reports on Form 10-Q with the SEC on an ongoing basis. These reports require much of the same information about the company as is required in a registration statement for a public offering.
What does the Securities Exchange Act require quizlet?
The Securities Exchange Act of 1934 requires the registration of each securities exchange, so that it now becomes a “self-regulatory organization” (SRO), subject to SEC oversight.
What is the purpose of the Securities Act of 1934?
The Securities and Exchange Act of 1934 (Exchange Act) is United States legislation that regulates securities trading on the secondary market, stock exchange markets and the participants involved to protect investors.
Which of the following is exempt from the disclosure requirements of the Securities Act?
Banks, savings institutions, and trust company securities are also exempt as long as they are organized under the laws of the United States or any state. However, securities issued by a savings and loan or building and loan are only exempt if the issuer is authorized to do business in this state.