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Securities Regulation

Securities Regulation - Securities Regulation What is a...

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Securities Regulation 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
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  • Spring '07
  • Reed
  • U.S. Securities and Exchange Commission, Securities Act, securities fraud, federal securities laws, common business activity

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