MGT 200 Lecture Notes - Lecture 9: Public Company Accounting Oversight Board, Insider Trading, Pyramid Scheme
Document Summary
Sale and transfers are heavily regulated by the government. Securities- instruments representing corporate ownership (stocks) or debt (bonds) Securities act of 1933- truth in securities bill. Secs regulatory functions have expanded over time by legislation from congress. Securities enforcement remedies and penny stock reform act (1990) Expanded sec enforcement options and allowed aljs to her more types of alleged cases. Sec can seek sanctions against those who violate foreign securities laws. Expanded power of sec to exempt persons, securities, and transactions from requirements of securities laws. Securities act of 1933- governs initial sales of stock by businesses- disclosure. The howey test- determines what types of contracts are considered securities. All essential information concerning the sales of securities must be available for the public. Security (basically any stake in ownership/debt of company): Common stocks, treasury stocks, bonds, debentures, stock warrants. Fractional undivided interest in oil, gas, or other mineral rights.
