Securities Exchange Act

Securities Exchange Act
Development of the Securities Act in 1933
The Securities Exchange Act in 1934, made the SEC (Securities and Exchange Commission) in light of the share trading system accident of 1929 and
the Great Depression of the 1930s. It was made to ensure U.S. speculators against misbehavior in securities and budgetary markets. The motivation
behind the SEC was and still is to complete the commands of the Securities Act of 1933: To ensure financial specialists and keep up the trustworthiness
of the securities market by correcting the present laws, making new laws and seeing to it that those laws are upheld. Amid the 1920s, around 20 million
Americans exploited post–war flourishing by acquiring shares of stock in different securities trades. At the point... Show more content on
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Either these securities originate from guarantors that have an abnormal state of reliability, or another legislature, administrative office has some kind of
locale over the backer of the securities. These sorts of securities are incorporated by securities issued by the U.S. government or federal agencies,
Municipal bonds (local government bonds), and Securities issued by banks, savings institutions, and credit unions. Fixed annuities are absolved from
SEC enlistment because the issuing insurance agency ensures the payout. Nevertheless, variable annuities require enlistment in light of the fact that the
payout fluctuates relying upon the execution of the securities held in the different record. A few securities that companies offer might be absolved
from the full enlistment necessities of the Securities Act of 1933 because of the way of the deal. The accompanying rundown demonstrates to you these
exclusions: Intrastate offerings, regulation a (Reg A) offerings, regulation d (Reg D) offerings, and rule
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What Are The Economic Consequences Of The Dodd Frank Wall...
Spencer Snodsmith
Assignment 3 and Final Paper
Assignment 3:
1.
John Maynard Keynes is one of the most recognized economists around. John Keynes was born on June 5, 1883 in Cambridge, England. His
father was an economist as well and worked at the University of Cambridge. His mother was a social worker. Keynes at the age of eighteen
attended Eton College where he received a B.A. in Mathematics in 1904. I wasn't until two years after, that his career really began. In 1906, Keynes
took a position with the civil service in Britain. He eventually quit that job and returned to Cambridge. It was here that he worked his way up the
ladder to eventually become the Treasury's principal representative at the peace conference at Versailles. In the wake of the Versailles Treaty, Kaynes
published 'The Economic Consequences of the Peace." In his book, Kaynes criticizes the harsh sanctions put on Germany after the war. This ... Show
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It is said that Dodd–Frank is the greatest regulatory reform since the reform that was brought about by the Great Depression. The financial crisis that
spanned from 2007 to 2010 reveled to many Americans that many Banks were participating in way too many risky deals. This crisis led to a
countrywide call for reform. It was clear to Americans as well as politicians that the people on Wall Street were not playing by the rules. President
Obama proposed the Dodd–Frank Act in 2009. The bill went through many changes in congress. The final bill affects all federal financial regulatory
agencies and pretty much every part of the financial services industry. This bill came down hard on Wall Street. The Act not only created reform but
bailed out some of the larger banks to try and prevent the financial crisis from

The US Securities And Exchange Commission (SEC)
The U.S. Securities and Exchange Commission that was established in 1934 by the United States Congress as an independent, quasi–judicial regulatory
agency following the Crash of 1929. The SEC is a federal agency that serves the purpose of administrating and enforcing when necessary federal
securities laws that were put in place to protect investors. A further look at what the SEC is and how it is structured will be explained in this paper.
Also a look at the federal laws that the SEC administers and enforces will be divulged to further emphasize what the SEC is as well as what it does.
The distinctive reason the SEC was created was to "regulate the stock market and prevent corporate abuses relating to the offering and sale of securities
... Show more content on Helpwriting.net ...
The first of the major laws is the Securities Act of 1933 of which there are two objectives; it "requires that investors receive financial and other
significant information concerning securities being offered for public sale and prohibits deceit, misrepresentations, and other fraud in the sale of
securities" (U.S., 2013). The second is the Securities and Exchange Act of 1934 this act gives the SEC broad authority over the securities aspects
including the regulation, overseeing and registering of clearing agents, transfer agents and brokerage firms of which this may include SROs or
self–regulatory organizations. The third is the Public Utility Holding Company Act of 1935 which regulates retail distribution of natural or
manufactured gas and electric utility. The fourth is the Trust Indenture Act of 1939 which applies to when notes, bonds or debentures are offered for
public sale this act applies to those debt securities. The fifth act is the Investment Company Act of 1940 "regulates the organization of companies,
including mutual funds, that engage primarily in investing, reinvesting, and trading in securities, and whose own securities are offered to the investing
public" (U.S., 2013). The final law is the Investment Advisors Act of 1940 "requires that firms or sole practitioners compensated for advising others
about securities investments must register

Case 7.5: Fred Stern & Company, Inc.
Case 7.5: Fred Stern & Company, Inc.
(Ultramares Corporation v. Touche et al.)
1.Observers of the accounting profession suggest that many courts attempt to "socialize" investment losses by extending auditors' liability to
third–party financial statement users. Discuss the benefits and costs of such a policy to public accounting firms, audit clients, and third–party financial
statement users, such as investors and creditors. In your view, should the courts have the authority to socialize investment losses? If not, who should
determine how investment losses are distributed in our society?
a.Benefits
i.Public accounting firms
1.Held more accountable, because their audits and reports affect a larger population of people
2. ... Show more content on Helpwriting.net ...
As long as they are submitting truthful information there should not be a problem.
b.Auditors should insist that engagement letters identify third parties, so that if there is an issue of fraud they know who they are liable for. It is
important that they are familiar with the third party companies, because they are essentially representing them and supporting their investments with
their audit report.
c.This practice could help eliminate the legal liability to smaller third party financial statement users that would not be as largely affected as other larger

Insider Trading
Insider Trading
Should it be legalized?
An objective look at the different arguments given by each side of the controversial topic of whether insider trading should continue to be illegal or
not. Also included is a subjective view of the author's stance on the subject.
Insider Trading
Should it be legalized?
An objective look at the different arguments given by each side of the controversial topic of whether insider trading should continue to be illegal or not.
Also included is a subjective view of the author's stance on the subject.
Mariah Frahm
2/24/2013
Mariah Frahm
2/24/2013
Table of Contents Introduction2 Arguments For2 Market Efficiency2 Proprietary Research vs. Insider Information3 Victimless Crime3... Show more
content on Helpwriting.net ...
So if the market isn't affected by which way you obtain the information, why is one way illegal and the other legal when it is the exact same
information?
For example, if I overheard a conversation by a CEO (or even if the CEO told me directly) revealing a morsel of information pertaining to their
business that had not become available to the public yet, that would be an illegal piece of information to trade on. On the other hand, if I went to that
CEO's business every day and interviewed their customers or managers and my efforts turned up the same information, that information would be
absolutely legal to trade on because it was the product of research even though it is the same exact information that was obtained by the CEO in the
first place.
Victimless Crime
There is no guarantee that there is always a victim of insider trading, more often than not, there is actually no victim at all. When a person trades on
the market, whether using legally obtained information or illegally obtained information, they have no idea who is on the receiving end of their trade.

That person trading does not in any way have a direct impact on other people and whether or not they are interested in buying or selling and that does
not matter whether it is legally obtained information or illegally obtained information or whether the trading party profits or loses. The person who is
initiating the trade is solely doing it

1934 Dbq
The effects of the economic market crash of 1929 appeared in how the public sustained severe losses at the hands of securities traders and
corporations. With the unmistakable need to restore financial specialist trust in the securities market President Roosevelt pushed for a huge securities
regulation and the creation of the Securities Act of 1933 sprouted along with the approval of Congress. Then in a year later in 1934 Congress observed
the need to make modifications to the 1933 Act by establishing an independent governmental regulatory body the Securities and Exchange Commission
(SEC). The SEC main responsibility came to be to ensure and protect the public against malpractices in the securities and financial markets. As the
years passed businesses and technology advances developed and the economic market expanded. With the economy market positive rise many
companies needed to keep up and acted upon fraudulent acts in order to stay in the business competition. Companies acted fraudulent by "cooking the
books" in recording... Show more content on Helpwriting.net ...
The Securities Exchange Act of 1934 is primarily concerned is requiring companies to disclosure their material information to investors. Different
from the 1933 Act, which consisted mainly on a onetime disclosure statute when an issuer sells its shares to investors, the Securities Exchange Act
1934 Act requires periodic disclosures by issuers that hold a publicly equity securities. The 1934 Act is to protect investors after the issuer becomes a
public company. Issuers with publicly traded equity securities, "Must report annually to its shareholders and submit annual and quarterly reports to the
SEC" (Mollar, Barnes, Langvardt, Prenkert, and McCrory, pg. 1206, 2016). Another difference between these two acts is that under the 1934 Act
issuers must register classes of securities, and on the 1933 Act it requires only for the term of an issuance of

Bally Total Fitness Corporation Operates Fitness Centers
Bally Total Fitness Holding Corporation operates fitness centers in the United States and Canada. The Company 's fitness centers feature
cardiovascular, conditioning, and strength equipment, as well as aerobic training programs.
Bally Total Fitness was created in 1983 when Bally Manufacturing purchased Health and Tennis Corporation of American and Lifecycle, anexercise
bike manufacturer, in 1983. Soon after, the fitness center expanded their resources through obtaining American Fitness Centers and Nautilus Fitness
Centers. In 1995, these companies consolidated under the Bally Total Fitness brand.
The company was a success thus far, however in 1996 the fitness center carried a $300 million debt at the time of its initial public offering. ... Show
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Typically, the price of the initiation fee was several of thousands of dollars, however most customers would finance this payment and were required to
pay the same amount month by month. The waited average expected membership life to was either twenty–two months for financed members or
thirty–six months for cash memberships. This fee was legally enforceable and was Bally Total Fitness' largest source of revenue.
When customer's memberships are cancelled due to failure to pay their monthly dues that they were obligated to pay in order to keep their
membership, but had already completed their initial contract period, Bally recognizes revenue from "reactivation" fees. The lost dues were not
attempted to be recovered by Bally due to the fact that there was no legal obligation for the customer to pay these fees. For the canceled members
who had completed the initial contract period, Bally waited at least six months until they began to solicit these members to reactivate. The members
that actually accepted the reactivation offer did so on average about 36 months after having stopped paying monthly dues. With these offers did not
come a claim for payments of "past due" amounts. However they did ask for either a nominal reactivation fee or no reactivation fee, and the payment
of monthly dues for a period of future services.
Monthly dues at Bally Total Fitness were typically ten dollars and there was no legal obligation

The Securities and Exchange Commission
Morgan Bennett Mr. Harris History Honors– Per 5 April 2001 The Securities and Exchange Commission In 1934 the Securities Exchange Act created
the SEC (Securities and Exchange Commission) in response to the stock market crash of 1929 and the Great Depression of the 1930s. It was created
to protect U.S. investors against malpractice in securities and financial markets. The purpose of the SEC was and still is to carry out the mandates of
the Securities Act of 1933: To protect investors and maintain the integrity of the securities market by amending the current laws, creating new laws and
seeing to it that those laws are enforced. During the 1920s, approximately 20 million Americans took advantage of post–war prosperity by purchasing...
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There are six main laws that govern the Securities Industry, but only four that are relevant to the majority of people. The first law is the Securities Act
of 1933, which is often referred to as the "truth in securities". The Security Act of 1933 has two basic objectives: to require investors to receive
significant information concerning securities being offered for public sale; and to prohibit deceit, misrepresentation, and other fraud in the sale of
securities. These two objectives are accomplished primarily by registration which discloses important financial information. While the SEC requires
this information to be accurate, there is no guarantee that it will be. However, if investors purchase securities and suffer losses due to the fact that the
information given was incomplete or inaccurate they have recovery rights. The registration process requires corporations to supply the essential facts
while minimizing the burden and expense of complying with the law. These requirements include a description of the company's properties and the
security to be offered for sale, information about the management of the company and financial statements certified by independent accountants. If U.S.
domestic companies file this information, the statements are available on

Financial Crisis Of 2008 The Sec
Since the financial crisis of 2008 the SEC's mission has been to protect investors and win back the trust of the public in capital markets. In efforts to
combat fraud and preventing another financial crisis, the SEC has grown their staff and is working on revamping their technological capabilities. For
the last 3 years we have seen aggressive enforcement, strategic reforms and new regulations with in the division.
FISCAL YEAR 2012
In the 2012 fiscal year the SEC heavily emphasized regulations under the Dobbs Frank act and the Securities Exchange Act of 1934. In this fiscal year
under the Dobbs Frank act the SEC issued its first Whistleblower Program award. The Whistleblower Program allows the division to award individuals
with high–quality information, which leads to an enforcement action. The success of this program has helped the SEC catch predators early on. It
saves the division time and resources by uncovering and tipping off the crime to them. The program also helps identify fraud much earlier on. This
can help elevate some of the damage to investors and even mitigate the number of possible victims. Also under the Dobbs Frank act the SEC barred 36
individuals from working in the securities industry.
Another area where the SEC turned its attention to was The Securities Exchange Act of 1934. In September of 2012 the SEC made its first financial
penalty against an exchange. The New YorkStock Exchange was in violation of the NMS (National Market System)

Securities Exchange Act 1934
The Securities Exchange Act of 1934
JFM
GM520 – Legal Political & Ethical Dimensions of Business
April, 12 2010
The Securities Exchange Act of 1934 was passed by congress to strengthen the government's control of the financial markets. It was preceded by the
Securities Exchange Act of 1933 which was enacted during the Great Depression in hopes that the stock market crash of 1929 would not be repeated.
The basic difference between the two acts was that the 1933 Act was to govern the original sales of securities by requiring that the issuers, the
companies offering the securities, offer up sufficient information about themselves and the securities so that the potential buyers could make informed
decisions. The 1934 Act was ... Show more content on Helpwriting.net ...
I find this to be quite an interesting fact. The insiders need to be very careful what they discuss outside of the office.
Violations of section 10(b) can happen due to timing. The textbook discusses how some insiders and tippees involved with a company named Texas
Gulf Sulphur, back in 1968, were in violation because they bought stocks too quickly after a press conference announcing the discovery of minerals.
They made purchases by telephone faster than the information was disseminated to the public. The SEC found them in violation due to timing only,
but that was enough to be considered guilty (Jennings 746). It's important to keep in mind that this violation would be much less likely to happen today
because of the technology surrounding the security exchange. Funny enough, the telephone would probably be considered slower than the internet
based transactions that are very common today.
A trend that has recently emerged as a violation of section 10(b) is the use of the internet to engage in pumping and dumping. Although not a new
concept, the internet has been used to increase the effect because of its ability to disperse particular company information very quickly in order to affect
stock prices. Persons initiating this deceptive behavior can sell their stocks for profit once they see that the changes to price have occurred. This type
of behavior is considered fraud since it is a manipulation of

Jordan Belfort: The Wolf of Wall Street
Jordan Belfort: The Wolf of Wall Street
History of the case
Definition of Crime
Laws Violated
Penalties Imposed Upon Guilty
In 1998 Jordan Belfort was indicted with 27 counts of International Securities Fraud and Money laundering. After cooperating with the FBI, in
2003 Belfort was sentenced to four years in prison and fined and ordered to back approximately $110 million that he had defrauded from investors.
He served 22 months in federal prison and was ordered to pay investors 50% of his income until $110.4 million was collected (Kolhatkar, 2013).
According to federal prosecutors, Belfort has not kept up his part to fulfill the terms of his agreement. After his release in April 2006 Belfort's income
has consisted of $1,767,203 ... Show more content on Helpwriting.net ...
18 U.S. Code В§ 1348 – Securities and commodities fraud
Whoever knowingly executes, or attempts to execute, a scheme or artifice–
(1) to defraud any person in connection with any commodity for future delivery, or any option on a commodity for future delivery, or any security
of an issuer with a class of securities registered under section 12 of the Securities Exchange Act of 1934 (15 U.S.C. 78l) or that is required to file
reports under section 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78o (d)); or
(2) to obtain, by means of false or fraudulent pretenses, representations, or promises, any money or property in connection with the purchase or
sale of any commodity for future delivery, or any option on a commodity for future delivery, or any security of an issuer with a class of securities
registered under section 12 of the Securities Exchange Act of 1934 (15 U.S.C. 78l) or that is required to file reports under section 15(d) of the
Securities Exchange Act of 1934 (15 U.S.C. 78o (d)); shall be fined under this title, or imprisoned not more than 25 years, or both.
(Money Laundering Control Act of 1986 )
Money Laundering: Money Laundering is the act of placing illegally acquired money in a legitimate business cash flow. This is done in order to be
able to use that currency without law enforcement and the IRS questioning cash flow pertaining to a certain individual or corporation in question. This
also considered a form of

The And Gas Exploration Corporation
Frankie Yankovich, who is a registered securities broker employed by Blanche Carte INC., made statements to potential investors that he had inside
information about GLUT. GLUT is an Oil & Gas Exploration Corporation whose stock was traded in the over–the–counter market. The statements
made by Yankovich include (1) that vast amounts of gold had been discovered in Yukatan and that GLUT had options on thousands of acres in the
gold–producing regions of Yukatan, (2) the discovery was "not publicly known, but would be subsequently announced", and (3) when this information
was made public, GLUT stock would increase to $10.00 to 415.00 within a short period of time and might increase to $100.00 per share within a year.
When these potential ... Show more content on Helpwriting.net ...
A decentralized market, without a central physical location, where market participants trade with one another through various communication modes
such as the telephone, email and proprietary electronic trading systems. In an OTC market, dealers act as market makers by quoting prices at which
they will buy and sell a security or currency. A trade can be executed between two participants in an OTC market without others being aware of the
price at which the transaction was effected, making an OTC market much less transparent than exchanges. OTC markets are also subject to fewer
regulations. OTC markets are primarily used to trade bonds, currencies, derivatives and structured products.
Over the counter markets are less transparent because of the nature of the sale. Securities are sold quite literally over the counter, behind closed doors,
with a negotiated price that are not on the listed exchange. There are also less regulations and usually deal with smaller companies that do not fit the
normal regulations to be listed on the exchange.
Moving forward, the investors are are using Section 10(b) of the Securities Exchange Act as their main defense. The Securities Exchange Act of 1934
was created to provide governance of securities transactions on the secondary market and regulate the exchanges and broker–dealers in order to protect
the investing public. All companies that are listed on stock exchanges must follow these

Liability to Contemporaneous Traders for Insider Trading
Introduction In this paper the main focus will be on the clause of 'Liability to contemporaneous traders for insider trading' which is section 20A in
the Securities Exchange Act of 1934. The paper will start off by giving some basic points that make up this section followed by the history and
background of the Securities Exchange Act of 1934. The paper will then highlight the major impact that this act has made on the industry in the current
global standing. Some of the basic points that make up the subsection 20A clauses include the following: Liability to contemporaneous traders
regarding insider investing (sec. 20a) Personal or Private Rights of Action according to Contemporaneous Trading Any individual who goes against
any kind of provision of the title or perhaps the established standards or laws by purchasing or selling a security during possession of materials, i.e.
confidential or non–public facts will be accountable for those actions in a court law. The person will be liable to answer in any skilled jurisdiction
structure to the individual who, contemporaneously used the purchase of securities which was the subject of aforementioned breach, has bought or
sold securities of the same stature. In case the individual has bought the securities, the situation is such that the law suit or violation is dependent on
the securities sales ratio and where the individual has sold these securities, the law suit or breach is dependent on a selection or purchase of the

Ethical Disclosure Reporting
Financial Disclosure Reporting: the Ethical Approach The events of fraudulent and misstatement of financial data over the past decade or so have
triggered an epidemic of financial concerns within the accounting community. These scandals have created a lot of economic turmoil, not only in the
United States (U.S.), but also in other developed countries around the world. Since these events have arose, several agencies have been seeking various
ways to help reduce future events of unethical behavior from continuing. After the WorldCom andEnron scandals at the turn of the century, the
Sarbanes – Oxley Act of 2002 (SOX) was implemented in an attempt to mitigate the guidelines of financial reporting in the U.S. and entities operating
abroad. Section ... Show more content on Helpwriting.net ...
due to prior legislations which allowed states to control the sales of securities. After the market crashed in the late 1920s, there were some concerns
about how ineffective the government was controlling the market (Schroeder et al, 2011). Therefore, in order to restore investor's confidence in the in
the marketing system, the Act was implemented. The Act allows investors' more access to financial data and how they perceive a company's financial
position; however, investors are not completely protected from financial loss, due to misstatements. On the other hand, investors can file lawsuits
against a company if there are some inconsistencies within the financial statements, which led to financial damages.
Securities Exchange Act of 1934 In 1934 the Securities Exchange Act, which is now known as the Securities Exchange Commission (SEC), was
formulated to address the responsibilities of corporate officers. These responsibilities requires managers to include all securities listed in the stock
market, financial disclosures, substituted solicitations and audit reports (Schroeder et al, 2011). They added that further SEC requirements include
continuous full and fair disclosures. Furthermore, each publicly traded entity must use appropriate forms for their annual reports:
Form 10, the initial registration statement a company need in order to sell public securities
Form 10 – K is the annual financial report a company must file

The U.S. Securities and Exchange Commission
The U.S. Securities and Exchange Commission In economic society, most people like to invest their fortunes in the capital market and security market.
As more and more investors join in the investing market which is very complex and fascinating, and it can be successful. Unlike the deposits are
hypothecated by the federal government, stocks, bonds and other securities can lose value in capital market because their no surety. So the security and
exchange commission play an important role in the capital market, and the important thing is the security and exchange commission demands the
public companies should be disclose the meaningful financial and other information to the public. This provides an equitable environment and common
knowledge... Show more content on Helpwriting.net ...
registrants of International Financial Reporting Standards (IFRS), issued by the International Accounting Standards Board. (c)The Role of the Division
of Trading and Marketing The role of the Division of Trading and Marketing is that assists the Commission implement its responsibility for maintaining
fair, orderly, and efficient markets. The Division's staff provides monitor major participants of the securities market, such as the securities exchanges;
securities firms; self–regulatory organizations (SROs) including the Financial Industry Regulatory Authority (FInRA), the Municipal Securities
Rulemaking Board (MSRB), clearing agencies that help facilitate trade settlement; transfer agents (parties that maintain records of securities owners);
securities information processors; and credit rating agencies. The Division also monitors Securities Investor Protection Corporation (SIPC) that makes
sure securities and cash in the customer accounts of the failed member brokerage firms. The additional responsibilities of Division include enforce
financial integrity program for broker–dealers of the Commission, reviewing recommended new rules and change to existing rules submit by the SROs,
assist the Commission to establish rules and publish interpretations on matters affecting the operation of the securities markets, and monitor the
markets. (d)The Role of the Division of Investment Management The role of the Division of Investment Management is that

The Securities And Exchange Commission: Principal Federal...
The Securities and Exchange Commission (SEC) is an important factor to the principal federal regulatory agency. it is an agency that regulates the
securities industry. The main goal of the Securities and Exchange Commission is to protect investors and maintain the integrity of the securities
markets. Numerous individuals rely on upon the SEC for regulating government securities laws that ensure speculators. The SEC additionally
guarantees that securities markets are reasonable and fair and, if fundamental, authorizes securities laws through the proper approvals. Essentially, the
SEC directs the exercises of all members in the securities markets–including freely held enterprises, open utilities, venture organizations and
consultants, and securities... Show more content on Helpwriting.net ...
is the headquarters. The SEC divisions include Corporation Finance, Trading, and Markets, investment Management, enforcement, Economic and Risk
Analysis. The Corporation Finance regulates the exposure made by open organizations, and the enrollment of exchanges, for example, mergers, made
by organizations. The division is additionally in charge of working EDGAR. The Trading and Markets helps the Commission in executing its obligation
regarding looking after reasonable, organized, and proficient markets. Some of their obligations are completing the Commission's budgetary
respectability program for representative merchants, exploring proposed new standards and proposed changes to existing guidelines documented by the
SROs, helping the Commission in setting up tenets and issuing translations on matters influencing the operation of the securities advertises and
surveilling the business sectors. The Division of Investment Management offers the Commission in executing its commitment some assistance with
regarding financial specialists protection and for propelling capital course of action through oversight and regulation of America's $26 trillion
hypothesis organization industry. The Division of Enforcement helps the Commission in prescribing to execute its law necessity limit the start of
examinations of securities law encroachment, by proposing that the Commission get normal exercises government court and

Essay On Securities Regulations
Securities regulations began in 1933 as a reaction to securities market violations. Securities regulations are a balance of investor and issuer interests.
Regulations have typically been enacted in reaction to a violation that affects many, including issuers, investors, and the public. These regulations are
not only created in reaction to violations, but the legislature also attempts to take a bigger step in prevention of the same violation reoccurring, as well
as preventing a violation that has yet to occur. In other words, securities regulations have always been on a mission to stay one step ahead of securities
violations from both issuers and investors. Regulations tend to tighten the rules to ensure investors and issuers do not have... Show more content on
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The following sections describe the major regulations that have been enacted within this eighty–year time frame and the economic climate that sparked
these regulations. This section concludes with the Jobs Act and how the Great Recession influenced Congress in its creation.
1.Securities Act of 1933
Securities regulations began when Congress enacted the Securities Act of 1933 in reaction to the 1929 Stock Market Crash–the infamous start of the
Great Depression. The legislature created the 1933 Act to safeguard the economy from experiencing another event like the Great Depression. The
objective of the Securities Act of 1933 was to "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." In other words, the Securities Act of 1933
required issuers to fully disclose all material information that a reasonable shareholder would require in order to make up his or her mind about a
potential investment. The Act focuses on governing offerings by issuers and creating transparency between issuers and investors so that investors
receive more protection than prior to the Act.
2.Securities Exchange Act of 1934
Another regulatory act passed just after the 1933 Securities Act was

Sarbanes Oxley Act of 2002
Sarbanes–Oxley Act of 2002 Descriptions of the main aspects of the regulatory environment which will protect the public from fraud within
corporations are going to be provided in this paper. A special attention to the Sarbanes– Oxley Act of 2002 (SOX) requirement; along with an
evaluation of whether Sarbanes–Oxley Act will be effective in avoiding future frauds based on their implemented rules and regulations. The main
aspects of the regulatory environment are based on the different laws and regulations the different governmental institutions such as federal, state, and
local developed to create control over business practices. The regulatory environment creates a positive business financial operational environment as
well as efficiency... Show more content on Helpwriting.net ...
7). The SEC is proactively working with other major markets that participate in environmental securities to certify that this guideline is being followed.
One of the SEC functions is to supervise the participants in the area of securities world. The securities would include the areas of securities exchanges,
securities brokers and dealers, mutual funds as well as investment advisors. Another function the SEC provides is the promotion of disclosure of market
related information and to maintain appropriate dealings. In addition, as a yearly procedure the SEC submits civil enforcement actions to those
individuals and companies violating any of the securities laws. The infractions can include accounting fraud, trading misconduct, and providing
deceptive as well as false information in regards the company's procedures or securities. In doing this yearly event and disclosing market related data, it
allows the SEC to protect companies and individuals against fraud. The SEC is an organization that works closely with other institutions to ensure rules
and regulations are implemented and followed by the public. Some of the institutions that work with the SEC include Congress, self–regulatory
organizations such as stock exchange, federal departments, the state securities

False Difficulty
True/False Questions
1.Fraud is defined as failure to use reasonable care in the performance of services.
Answer: False Difficulty: Easy
2.Most of the burden of affirmative proof is on the defendant under common law.
Answer: False Difficulty: Medium
3.The Ultramares v. Touche case held that auditors could be held liable to any foreseen third party for ordinary negligence.
Answer: False Difficulty: Medium
4.The Securities Exchange Act of 1934 offers recourse against the auditors to a far greater number of investors than does the Securities Act of 1933.
Answer: True Difficulty: Medium
5.The precedent set by the Hochfelder v. Ernst case ... Show more content on Helpwriting.net ...
Under the Restatement of Torts approach to liability the auditor is generally liable to the bank which subsequently grants the loan for: A)Lack of due
diligence. B)Lack of good faith. C)Gross negligence, but not ordinary negligence. D)Either ordinary or gross negligence.
Answer: D Difficulty: Hard
16.An auditor knew that the purpose of her audit was to render reasonable assurance on financial statements that were to be used for the application
for a loan; the auditor did not know the identity of the bank that would eventually give the loan. Under the foreseeable third party approach the auditor
is generally liable to the bank which subsequently grants the loan for: A)Lack of due diligence. B)Lack of good faith. C)Gross negligence, but not

ordinary negligence. D)Either ordinary or gross negligence.
Answer: D Difficulty: Hard
17.Which of the following forms of organization is most likely to protect the personal assets of any partner, or shareholder who has not been involved
on an engagement resulting in litigation? A)Professional corporation. B)Limited liability partnership. C)Partnership. D)Subchapter M Incorporation.
Answer: B Difficulty: Medium
18.Under which common law

Securities Exchange Act Of 1934: The Strengthening Of...
individuals who commit violations of the Securities Exchange Act of 1934. (Williams, 2011)
The Strengthening of Internal Controls Finally, Title IV section 404 requires management to include an internal controls assessment in its annual report
to the SEC. The purpose of this legislative action now requires management to be responsible for establishing and maintaining an adequate internal
control structure and procedures for financial reporting; provide an assessment of the effectiveness of the company's internal controls. (Williams, 2011)
The closing for inventory was leading to exaggerate profits since been removed from the expense of the statement of income and reported as asset on
the balance sheet. For successful the fraud, it should

Fred Stern & Co Acc492 Case Study
Week Five Case Studies
Team D
ACC 492
January 15, 2007
CASE 8.1
FRED STERN & COMPANY, INC.
1. Observers of the accounting profession suggest that many courts attempt to ВЎВ§socializeВЎВЁ investment losses by extending auditorsВЎВ¦
liability to third–party financial statement users. Discuss the benefits and costs of such a policy to public accounting firms, audit clients, and third–party
financial statement users, such as investors and creditors. In your view, should the courts have the authority to socialize investment losses? If not, who
should determine how investment losses are distributed in our society?
The word "socialize" is used to suggest a socialist society in which profits and losses are shared by and distributed to the ... Show more content on
Helpwriting.net ...
Although the auditing profession was in it's infancy in the early 1920's, generally accepted auditing procedures had not yet been developed at that time
so the balance sheet was considered the reliable financial source required.
5. When assessing audit risk, should auditors consider the type and number of third parties that may ultimately rely on the clientВЎВ¦s financial
statements?
In an audit, the auditorВЎВ¦s responsibility it to the shareholders or the client. However, the auditor is providing financial statements that are useful to
additional third parties such as creditors and investors. Audit risk involves the auditorВЎВ¦s opinion on whether the financial statements are materially
misstated. The auditor assesses the audit risk to determine the audit procedures needed to perform the audit. When the auditor is assessing audit risk,
he assesses risk on behalf of the third parties according to their interest. The main purpose of audit risk is audit objectivity.
Should auditors insist that audit engagement letters identify the third parties to whom the client intends to distribute the audited financial statements?

The auditorВЎВ¦s responsibility is to the client and not the third parties the client plans to distribute the financial statements to. The auditor does
however consider the third parties when completing the audit. There is no direct responsibility to the third parties.
Would

Martha Stewart Case Summary
One of our most world–renowned business women and television personalities Martha Stewart decided to dip her feet into illegal insider trading.
Martha served five months in a federal prison at Alderson in West Virginia and two additional years of supervised release after a portion in home
confinement. Back in 2001, Martha Stewart sold all her shares from a biotech company she invested in called ImClone. Ironically, a few days after she
sold her shares the company's stock fell sixteen percent after they publicly announced that the FDA did not approve ImClone's pharmaceutical product
(Moffatt, 2017). With her selling her shares before the company went public and the subsequent drop in stock's value, Martha avoided a $45,673 loss.
In addition, she wasn't the only one who benefitted from the quick sale. The CEO of ImClone, Sam Waskal, ordered to... Show more content on
Helpwriting.net ...
Martha Stewart was in violation of Title 17, Code of Federal Regulations, Section 240.10b–5, having the knowledge to make certain adjustments
unfairly is something that can be an advantage to you, but a disadvantage to others in all factors(Moffatt, 2017).
Meanwhile, Chiarella tried to do the same thing Martha did by trying to gain the upper hand illegally and got caught in the process. This brings us to
the case Chiarella v. United States, 445 U. S. 222. A petitioner that was employed by a financial printer and was contacted by corporations to print
takeover bids. Deduced by the names of the companies that they were targeting, the information contained in documents that was delivered to the
printer by acquiring companies. Without

Securities Regualtions Study Guide
XVI. Securities Regulation – 1933 Act A security is a contract, transaction or scheme whereby a person invests his money in a common enterprise and
is led to expect profits solely from the efforts of a promoter or a third party (Howey test) Provide investors with information for securities offered for
sale and to prohibit fraud in the sale of securities. The 1933 Act governs the public distribution of securities. It prohibits the offer or sale of securities
to the public unless the offering is properly registered. A. Persons covered are underwriters, dealers and issuers. 1. Underwriter purchases securities
from an issuer with the intent to distribute to... Show more content on Helpwriting.net ...
Accredited investors include: Up to 5 million. Advertising is not permitted. No unaccredited investors are allowed to purchase. * corporations,
partnerships, or other organizations: * financial institutions; * with more than $5,000,000 of assets: * corporations and partnerships, not formed
expressly for this investment; * non–profit organizations; * any entity owned entirely by accredited investors; * individuals or married couples *
corporate or partnership insiders; * with assets worth more than $1,000,000; * or individuals who earned at least $200,000, or $300,000 for a married
couple, in the last 2 years, and expect to make at least the same amount in the current year. b. Rule 504 A non–reporting company can raise up to
$1,000,000 from any number of individuals, accredited or not, without a SEC registration. General offering and solicitations are permitted under Rule
504 as long as they are restricted to accredited investors. Shares are not restricted. 1) Offering cannot exceed $1 million in a 12 month period. 2)
Unlimited number of investors or unlimited type

The Case Of Cardillo Travel Systems Essay
Situations arise that cause companies to conduct or record fraudulent transactions to deceive the stakeholders or in the case of Cardillo Travel Systems,
meet court orders. Cardillo Travel Systems, ranked as the fourth largest company in the travel agency industry, was founded in 1935 and purchased by
A. Walter Rognlien in 1956. After being acquired by Rognlien, annual revenue increased steadily but expenses were increasing at a more rapid rate. By
1985, Cardillo was involved in a lawsuit and a court injunction required the company to maintain at least $3 million in stockholders' equity. Around the
same time, Rognlien had negotiated a transaction with United Airlines that if record as revenue would ensure the minimum stockholders' equity was
met (Rittenberg, Johnstone, Gramling, & Knapp, 2012). As with most fraudulent activity, management worked together to get around the terms of the
agreement and get the transaction recorded. This action led to the various violations including making false representations to outside auditors, failing
to maintain accurate financial records, failing to file prompt financial reports with the Securities Exchange and Commission (SEC) and violating
insider trading provisions. Securities Exchange and Commission Charges Issued The SEC found three of Cardillo's executives, CEO A. Walter
Rognlien, COO Esther Lawrence, and Vice President of Finance William Kaye, guilty of violating several federal securities laws. All three executives
provided false

Case Study Of An Independent Broker-Dealers
White Paper
Staright through processing
November 2015
Table of Contents
Abstract1
1. Overview1
2. Introduction3
2.1 Real–World Scenario – Order Entry application Implemented3
2.1.1 Strategy:3
2.1.4. Result:6
3. Conclusion:6
5. How will your use case bring value to IGATE business/vertical:6
6. References7
7. About the Authors7
Abstract
Independent broker–dealers and financial advisors face a number of daunting challenges in todays
Business environment. These challenges have the potential to severely impact this important financial services channel by substantially increasing the
cost of doing business. It is essential that IBDs and their affiliated financial advisors develop effective means for overcoming these obstacles so that
they may continue to effectively ... Show more content on Helpwriting.net ...
Overview
What is an Independent Broker– Dealer?
Broker–dealers are specialized financial services companies that trade securities for their own account or on behalf of their customers. Broker–dealers
are regulated under the Securities Exchange Act by the Securities Exchange Commission (SEC), a unit of the US government. Some regulatory

authority is further delegated to the Financial Industry Regulatory Authority (FINRA), a self–regulatory organization. Many states also regulate
broker–dealers under separate state securities laws known as "blue sky" laws.
The IBD business model focuses on comprehensive financial planning services and unbiased investment advice. IBD firms also share a number of
other similar business characteristics. They generally clear their securities business on a fully disclosed basis; primarily engage in the sale of packaged
products, such as mutual funds and variable insurance products; take a comprehensive approach to their clients' financial goals and objectives; and
provide investment advisory services through either affiliated registered investment adviser firms or such firms owned by their financial advisor.
Essential Characteristics of IBD

Common Law Fraud Case
reasonably able to expect or foresee the nonclient's use of the accountant's work product". Under this test, both the shareholders and Prosser Bank would
be able to sue the accountant.
Common Law fraud is difficult to prove. Actual fraud liability covers all foreseeable users of the accountants work product, but scienter needs to be
proven. Since the embezzlement scheme was carried out by the President, the accountant cannot be sued for actual fraud. Constructive fraud occurs
when a professional either misstated a material fact, acted recklessly, or was grossly negligent. Reliance needs to be proven, but privity is not
required. The likelihood for the accountant being held liable for fraud is minimal.
Under Statutory Law, the two relevant ... Show more content on Helpwriting.net ...
In this case, the accountant is the expert, and he served as the auditor for the financial statements provided to the public. The purchasers during the IPO
relied on his expert opinion during the registration statement process. Neither are the proof of reliance nor is privity required. Section 11 holds auditors
"liable to any purchaser of securities issued pursuant to a defective registration statement". As stated previously, the accountant missed the
misstatements in the financial statements. The accountant may claim due diligence, but he did not research into the irregular entries, and the reasons
for him not discovering the misstatements may be attributed to his inexperience or lack of due diligence. However, if the accountant can prove due
diligence and that he reasonably believed the accuracy and completeness of the financial statements in compliance with GAAS, he will not be held
liable. In the court case Escott v. BarChris Construction Corp, it was discovered that accounting firm, Peat, Markwick, Mitchell & Co., did not
perform their due diligence in investigating "danger signals" while performing as the expert for the registration statement of Bar Chris. The senior
partner from Peat, Markwick, Mitchell & Co. performed the audit, but did not do enough. Did the recent graduate do enough when auditing Cardozo
and Co, Inc.? Section 12(a)(2) deals with the distribution of securities, privity does not need to be proven, and the accountant had to misstate or omit a
material fact. The accountant should also have had a financial interest in the sales and actively sold them to individuals. In this case, the accountant did
not directly sell the securities to the shareholders, nor did he benefit from the sale of the securities. Section 17(a) has three subsections related to

Case Briefing and Problem Solving Essay
Issue Spotters Delta Tools, Inc., markets a product that under some circumstances is capable of seriously injuring consumers. Does Delta owe an
ethical duty to remove this product from the market, even if the injuries result only from misuse? Why or why not?
I think Delta Tools, Inc. doesn't owe an ethical duty to remove the product from the market unless the company doesn't warn its customers of the
danger they can meet upon misuse of the product. If the company takes all the measures to warn their customers of the danger of the product once it's
misused, customers have knowledge of the risk and voluntarily assume it. For example, the use of any antibiotics with the alcohol can lead to many
harmful processes and activities. ... Show more content on Helpwriting.net ...
In addition, Brody and Crawford claimed that THC, in its March 19 and April 24 press releases, materially misled them about THC's intention to sell
the company. The district court granted the defendant's motion to dismiss the claims. The plaintiffs appealed to the US Court of Appeal, Ninth Circuit.
ISSUE Are Brody and Crawford the proper plaintiffs to sue THC for damages for violation of the statute and ruleВ№ regarding theinsider trading?
DECISION No. US Court of Appeal, Ninth circuit, affirmed the district court's decision to dismiss Brody and Crawford's complaint for failure to state
a claim upon which relief can be granted.
REASON The Court noted that plaintiffs did not meet a contemporaneous trading requirement, a judicially–created standing requirement, which
specified in Section 14(e) and Rule 14e–3 that the plaintiffs must have traded in a company's stock at about the same time as the alleged insider. In
addition, the Court decided that the plaintiffs' complaint must specify the reason or reasons why the statements made by THC in its press releases
were misleading. Brody and Crawford argued that in order for statement not to be misleading, "once disclosure is made, there is a duty to make it
complete and accurate", for which the Court found no support in the case law. The case lawВІ only

The Security And Exchange Commission
The Security and Exchange Commission Introduction The U.S. Securities and Exchange Commission's essential obligation is to ensure protection for
investors and keep up the quality of the securities markets. The laws and standards that administer the securities business in the United States get a
basic idea: all investors, whether vast organizations or private people, have to have admitted to certain essential facts around a venture before getting it.
The Security and Exchange Commission requires open organizations to unveil significant money related and other data to people in general. The
Security and Exchange Commission likewise regulates stock trades, brokers, financial advisors, shared assets, and open utility holding organizations.
Their essential worry here is promoting exposure of sensitive data, authorizing the securities laws, and ensuring financial specialists. The viability of the
Security and Exchange Commission pivots upon its implementation power. Every year the SEC brings between 400–500 common authorization
activities against people and organizations that infringe upon the securities laws. A portion of the common infractions incorporates insider exchanging,
bookkeeping misrepresentation, and giving false or misdirecting data about securities and the organizations that issue them. Creation They set up the
Security and Exchange Commission in 1934. Its motivation was to apply the recently passed securities laws, to advance dependability in the business
sectors

What Was The Major Stock Crash In The 1930's
The major stock crash in 1929 has created the foundation for the modern accounting. This economic downturn has caused the Great Depression in
1930's. NYSE does not want it to happen again so they asked the Institute for help. The Blue Ribbon Committee from the Institute has created total
of six broad principal approved in 1934. They have been named as GAAP in 1936. Another big move in 1934 is when President Roosevelt and the
Congress passed two laws which are the Securities Act of 1933 and the Securities Exchange Act 1934. This is the birth of the U.S Securities and
Exchange Commission or known as SEC. SEC played a huge role in accounting and it is still part of today's accounting world. Over the course of the
history, SEC has worked with... Show more content on Helpwriting.net ...
It was made to be fair and unbiased for the accounting world. SEC fully supports the FASB and they are still operating in present. They dwell in
Norwalk, Connecticut to be close to NYC where most of the big corporations are. The first major move is they released a Statement of Financial
Accounting Standard in 1975. It is a framework with policies that the corporations have to follow. This framework prefers to see "the assets and
liability view" than the "revenue and expense view" They were not pleased with the matching principle that was created by AAA in 1940. Also in
SFAS they included marketable securities that requires to reporting in unrealized holding gains and losses. In 1979, they included reporting on
capitalized on interest cost and the proper way to create FMV (revised in 1995 to prevent false information). In 1981, they solved the issue with
foreign currency exchange. In 1987, they have created a cash flow method with two options; direct and indirect. In 1990, they revised the policy to
include post–retirement and health care as liability. In 1995, Employee stock options are included and 1997 Comprehensive income is included. In
2002, the Goodwill and other intangibles are now reported. Also in 2002 after Enron collapse was they formed Sarbanes–Oxley Act. Now ISAB and
FASB worked jointly to converge GAAP and

Securities Exchange Act Of 1934 Essay
From my research, I would like to briefly talk about some general idea of the securities exchange act of 1934. Firstly, in response for the Stock
Market Crash of 1929. Securities exchange act of 1934 was established on June 6,1934, is a law governing the secondary trading of securities in the
United States of America. The act of 1934 and related statutes form the basis of regulation of the financial markets and their participants in the united
states. The main purposes of the Securities and Exchange Acts is to prevent the insider stock price manipulation, place the margin buying of stocks
under tighter restrictions, and end misrepresentation of stock values by requiring full disclosure of information related to the securities sold on the
stock exchanges. It gave the federal government's regulatory responsibilities in called laissez–faire economy.... Show more content on Helpwriting.net ...
So the investors can check this information easily. In this way, investors gain more confidence about the securities market and is a good to rebuild the
economy. Also there is one coincident thing of the SEC is the first chairman of the SEC was Joseph P. Kennedy, father of future president John F.
Kennedy. According to the information which I found, the main purposes of the securities exchange act of 1934 is ensuring greater financial
transparency and accuracy and less fraud or manipulation. All this purposes of the securities exchange act of 1934 is to ensure environment of fairness
and investor confidence. The act highly focuses on the insider trading, the SEC promoted the values of full disclosure for investors in insure a high
standard of fairness and ethical business dealing in the securities exchange market. Specific fraud and manipulation prohibitions supported the
exchange act's disclosure

Project Report On Performance Of Banking Sector
PROJECT REPORT ON PERFORMANCE OF BANKING SECTOR IN BSE SENSEX
Introduction
STOCK EXCHANGE
The Securities Contract (Regulation) Act, 1956 [SCRA] defines 'Stock Exchange' as any body of individuals, whether incorporated or not, constituted
for the purpose of assisting, regulating or controlling the business of buying, selling or dealing in securities. Stock exchange could be a regional stock
exchange whose area of operation is specified at the time of its recognition or national exchanges, which are permitted to have nationwide trading since
inception.
Stock Exchange is that place where trading of shares is done in terms of sale and purchase.
Features of Stock Exchange
Stock Exchange is a place where securities issued by government, companies and other authorities are purchased and sold.
Its purpose is to assist and regulate buying and selling in securities.
Its area of operation or geographical jurisdiction is well defined
It operates as per guidelines of Securities & Exchange Board OF India (SEBI)
INDIAN STOCK MARKET
India Stock Market is one of the oldest in Asia. The earliest records of securities dealings in India are meagre and obscure. The East India Company
was the dominant institution in those days and business in its loan securities used to be transacted.
In 1875 India's first stock exchange was established as Bombay Stock Exchange which is the oldest stock exchange in Asia with rich heritage.
Formally Bombay Stock Exchange was established as "The

First Securities Company of Chicago Essay
The critical issue in this case study is the responsibility of auditor. Should Ernst & Ernst be civilly liable for defrauded investors of First Securities
Company of Chicago under Securities Exchange Act of 1934 under Rule 10b–5.
According to Securities Exchange Act of 1934 under Rule 10b–5, plaintiff which was the defrauded investor Hochfelder needed to prove that
Ernst & Ernst intentionally manipulate the escrows investors.
Ernst & Ernst had audited First Securities Company of Chicago for two decades, Ernst & Ernst should have noticed Nay's "mail rule" policy
could lead to potential internal control weakness and misleading financial statement.
Defrauded investors were not properly informed or obtained ... Show more content on Helpwriting.net ...
Do you agree? Why or why not?
The mail rule was relevant to the audits because auditor relied upon management's financial information to report their opinions on a company. It's
crucial that auditors should have attested every possible or doubtful piece of financial information that could be misrepresented by managements as
well.
3.Define negligence as that term has been used in legal cases involving independent auditors. What is the key distinction between negligence and
fraud? Between recklessness and fraud? For all three types of professional misconduct, provide an example of such behavior in an audit context.
Negligence is defined as failure to exercise that degree of care a person of ordinary prudence (a reasonable person) would exercise under the same
circumstances. The key distinction between negligence and fraud is intention. Recklessness is defined as unconscious intent to deceive. Fraud is a
conscious intent to deceive.
Negligence can be found in Tommy O' Connell case, which Tommy was too caught up on his audit on Altamesa's job, he failed to properly supervise
his subordinate Carl to make sure he did the right job. Recklessness case can be found in this case where the auditor was aware of the mail rule
policy. Rather than challenge this policy, they ignore it. This should have been a warning flag of possible criminal intent. This disregard for this

The Overpaid CEO Summary
The Overpaid CEO In "The Overpaid CEO" Susan Homberg and Mark Schmitt bring to attention how CEO pay in America is ridiculous in numbers
as opposed to other parts of the world. Looking back, in the nineteen hundreds CEO pay was relativity average. As businesses and companies began to
expand there was a demand for higher pay. Between 1978–2012 CEO pay increased by 875%! Many rules and regulations were put in to place to limit
the pay of a CEO, such as the Securities Exchange Act that I will explain later on, regardless CEO pay kept getting higher and higher as many
loopholes were found. Bonuses pay a large part in the salaries of CEOS', as an effect CEOS' tend to partake in risky behavior in order to score those
big paychecks. In the early... Show more content on Helpwriting.net ...
I agree with that idea to some extent, CEOS' do carry pressure it comes with the job title. However, they also have people that work with to
eliminate this pressure to make sure everything runs smoothly. They are called employees, these people sit behind desks for hours on end or work on
the field or behind machines and they do the major work. Also, when something does go wrong in the company employees are the first people that are
told to go home. They end up paying the price for the fraud, high risk taking and problematic results of the CEO decision. I think that when the
economy is down or there is a crash in the market that a CEO has the right to really worry and feel pressured to do a good job, but for the most part
they feel pressured so they can ensure those millions of dollars in bonuses find their way into their bank

Castleman Vs Enron
On August 2, 2007, the U.S. District Court in Houston entered final judgments in the Commission's civil action against Jerry K. Castleman, a former
Enron executive and accountant, and Kathleen M. Lynn, a former Enron executive. The Commission filed a complaint against Castleman, Lynn and
others stating that they had participated in a transaction that defrauded Enron's security holders to enrich themselves and others. Included in the
complaint, was disclosed that they were involved in a sham sale pursuant in which Enron manufactured earnings and then repurchased the asset without
reversing the earnings that they had originally purchased improperly. Some of the security law violations include filing materially false and misleading
financial statements

Stock Market Crash Of 1929
Stock Market Crash of 1929 The United States was experiencing great optimism and economic growth prior to the stock market crash of 1929. The
conclusion of World War I in 1918 ignited this exciting time known as the "Roaring 20's." The key economic factors that contributed to this time is
that business' were exporting to Europe (which was still rebuilding from the war), unemployment was low, and automobiles and other goods were
spreading across America creating jobs and efficiencies for the economy. During this time of economic growth, the securities market experienced a
surge in activity. This was primarily due to investors buying on margin, which is essentially credit, as ratios as high as three to one. This meant that
investors were putting down one dollar of capital for every three dollars of stock they purchased. Even though a lot of people during this time made
enormous amounts of gains, this still meant that a loss of a third of the value of the sock would wipe them out. This was a huge problem for investors
because they were buying stocks in expectation of rising share prices rather than fundamentals. Even with this surge of activity in the securities market,
propositions that the federal government should require financial disclosure and prevent fraudulent sale of stock were never seriously followed. The
economy stumbled in the months leading up to the stock market crash of 1929 due to excess production in many industries. This created a

SEC Rules And Regulations Essay
Regulations and rules are part of today's everyday life as defined through the Securities and Exchange Commission (SEC), a federal agency, which
Purdue University adheres to. The SEC main purpose is to oversee the business processes to ensure investors are protected, to ensure processes are
followed and markets are running smoothly. The SEC also stipulates that companies disclose their financial reports on a regular basis so that
investors or the public has access to the companies' performance. Therefore, investors have a basis to understand the company and decide if they
want to invest in the company or not. Yet, one may ask why the Sec should provide these rules and regulations. To answer this would be a look at the
SEC history. In 1934, the United States created the Securities Exchange Act of 1934 which is a law to investigate companies that violate federal
securities and files criminal charges when companies are in violation. However, one of the most important... Show more content on Helpwriting.net ...
The division also oversees the capital formation and the regulations of the United States management areas. They watch the mutual funds and the
exchange looking for enforce the law when companies are in direct violation. The Division also assists the Commission to enforce investment matters
or advising. The Division of Enforcement helps the SEC through the law. They recommend investigations and civil action, or prosecuting on behalf of
the SEC. This division also files criminal cases against companies or people when they are in direct violation of the law. Division of Economic and Risk
Analysis supports the SEC through analyzing and researching or assessing the economy and interacting with many other Divisions. The Division looks
are risks in the litigation, through examination, and through registrant reviews. Their function is to communicate the "Commission rulemaking and
policy development" (US,

Securities Act Of 1934 Summary
The stock market crash, in October 1929, caused investors to lose large sums of money. The public no longer had faith in the markets, and it was
believed, in order to for a successful economic recovery, the market had to change. The protection of investors was now a priority, so began, the
passing of the Securities Act of 1933. Shortly followed by the Securities Exchange Act of 1934 and the creation of the Securities and Exchange
Commission. "The Securities Act of 1933 was the first federal legislation used to regulate the stock market" (Investopedia). This Act was to prevent
fraud and require investors to have access to a company's financial records. As well, the Act of 1933 required all securities sold, within theUnited States
, to be registered with the Securities and Exchange Commission. This assisted in giving investors a more transparent look into the company while
ensuring the securities were not fraudulent. ... Show more content on Helpwriting.net ...
The Act of 1934 focuses on the markets, such as, the securities, stock exchange and the individuals participating in these markets, by determining the
laws that regulate them. This Act protects investors from fraud, giving transparency into companies, and preventing individuals from taking advantage
of information others may not have; in the secondary markets. The Securities Act of 1934, also created the Securities and Exchange Commission,
which regulates the security markets. The SEC is broken down in to five divisions, each with its own specific areas to cover. The goals of each
divisions are to uphold the security laws and monitor security institutions. These divisions are Corporate finance, Enforcement, Investment
Management, Economic and Risk Analysis, and Trading and Markets. The Enforcement division in the section who mainly handles with assisting the
Commission in executing its law

1234
Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: None (Title of Class) Indicate the number of outstanding
shares of each of the issuer's classes of capital or common stock as of the close of the period covered by the annual report: 13,517,672 Class A ordinary
shares, par value US$0.001 per share, and 419,204,400 Class B ordinary shares, par value US$0.001 per share as of December 31, 2015. Indicate by
check mark if the registrant is a well–known seasoned issuer, as defined in Rule 405 of the Securities Act. пЃёпЂ YesпЂ пЂ пЃЇпЂ No If this report is
an annual or transaction report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the... Show more
content on Helpwriting.net ...
пЃЇпЂ Item 17пЂ пЃЇпЂ Item 18 If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule
12b–2 of the Exchange Act). пЃЇпЂ YesпЂ пЂ пЃёпЂ No Table of Contents TABLE OF CONTENTSINTRODUCTION1 FORWARD
–LOOKING
STATEMENTS 3 PART I 4 Item 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISORS 4 Item 2. OFFER STATISTICS AND
EXPECTED TIMETABLE 4 Item 3. KEY INFORMATION 4 Item 4. INFORMATION ON THE COMPANY 56 Item 4A. UNRESOLVED STAFF
COMMENTS 100 Item 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS 100 Item 6. DIRECTORS, SENIOR MANAGEMENT
AND EMPLOYEES 125 Item 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS 135 Item 8. FINANCIAL INFORMATION
139 Item 9. THE OFFER AND LISTING 141 Item 10. ADDITIONAL INFORMATION 142 Item 11. QUANTITATIVE AND QUALITATIVE
DISCLOSURES ABOUT MARKET RISK 150 Item 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES 151 PART II 153
Item 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES 153 Item 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF
SECURITY HOLDERS AND USE OF PROCEEDS 153 Item 15. CONTROLS AND PROCEDURES 154 Item 16 [RESERVED] 156 Item 16A.
AUDIT COMMITTEE FINANCIAL EXPERT 156 Item 16B. CODE OF ETHICS 156 Item 16C. PRINCIPAL ACCOUNTANT FEES AND
SERVICES 156 Item 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES 157

Securities Exchange Act

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