Securities Regulation - Securities Regulation What is a...

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What is a security? o 3 relevant questions Is the investment in a common business activity? Is the investment based on a reasonable expectation of profits? Will these profits be earned through the efforts of someone other than the investor? Securities and Exchange Commission (SEC) o Responsible for administering federal securities laws Possesses both quasi-legislative and quasi-judicial powers Sarbanes-Oxley Act 2002 o Revitalization of the SEC o Accounting Reforms – PCAB o Corporate Governance o Financial Statements and Controls o Securities Fraud Securities Act of 1933 – regulates the IPO of a security o Parties regulated – anyone involved with or promoting the initial sale of securities Issuer – company offering stock Underwriter – bank or brokerage firm that assists in the IPO Controlling persons – company members who will own a large controlling portion of stock Seller – anyone who sells the initial stock offering
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This note was uploaded on 05/26/2011 for the course LEGL 2700 taught by Professor Reed during the Spring '07 term at University of Georgia Athens.

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Securities Regulation - Securities Regulation What is a...

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