MT311-02_Unit 9_Case Analysis_Marjorie Bowden

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Securities and Exchange Act Page 1 of 3 Langley Brother, Inc.: Securities and Exchange Act Marjorie Bowden MT311-02
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Securities and Exchange Act Page 2 of 3 The Securities and Exchange Commission (SEC) oversees securities in the United States, and takes steps to protect investors. It is designed to prevent fraud, to make sure that information is truthful, and provides investors with information about the securities they buy. To do this one must follow the registration and reporting requirements. Securities for sale need to be registered with information about the parent company, a description of the securities, and the financial status of the company. Exempt securities do not need to fulfill this registration requirement. There are several different criteria which can qualify a security for exemption from registration and reporting rules. Examples of exempt securities are: A Treasury security, municipal bonds and commercial paper,
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Unformatted text preview: small security offerings and intrastate offerings, securities which are only offered to accredited investors, and securities which are not offered by a dealer, issuer, or underwriter. Exempt securities may be subject to other regulations which are designed to protect consumers. In the case of Joseph and Harry Langley disagreeing whether the sell of no par common stock worth $1 million to the public, I am unsure if this would be exempt or not. If a person is not sure whether or not a specific security is exempt, they can consult a financial adviser or broker. A financial advisor or broker should be able to provide information and advice on whether the securities are exempt or not. References: Miller, R. L., & Jentz, G. A. (2008). Fundamentals of business law part I. Mason, OH: Cengage Securities and Exchange Act Page 3 of 3 Learning....
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