LGS 200 Chapter Notes - Chapter 17: Wall Street Reform, Insider Trading, Rescission
10 Apr 2017
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Document Summary
Regulates the issuance of securities by corporation, a general or limited partnership, an unincorporated association, or an individual. Applies to initial issue of securities, including ipos and sales of new securities by established companies. Purpose: to require full and honest disclosure of information to investors. Dodd-frank wall street reform and consumer protection act 2010. In 2002 the sarbanes-oxley act was enacted to bring more transparency to securities markets and eliminate conflicts of interest in the industry. In 2010 the dodd-frank act was enacted to regulate hedge funds, derivatives and abusive practices in the securities industry following the 2008 financial crisis. Common securities: common and preferred stocks, bonds, debentures, and warrants. Statutorily define securities: instruments expressly mentioned in securities acts (interests in oil and gas) Investment contracts: investment of money by investor in common enterprise and investor expects to make profit based on sole or substantial efforts of promoter or others. Federal administrative agency empowered to administer federal securities laws.
