FIN 419 Week 5 Complete DQS 1 to 4

FIN 419 Week 5 Complete DQS 1 to 4 - FIN 419 Week 5...

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FIN 419 Week 5 Discussion Question # 1 What is the SEC? Established in 1934 after the great depression, the Securities and Exchange Commission (SEC) is, “The federal regulatory body that governs the sale and listing of securities” (Gitman, 2006, p. 46). SEC’s mission is creating and enforcing regulations that set the standards for the public disclosure of financial information by public companies. There are four major divisions of the SEC I.e. Market Regulation division, Corporate Finance division, Investment Management division, and Enforcement division. How does it impact financial decision-making? The SEC impacts financial decision-making by setting legal requirements. It also provides clear image of the working conditions of the US companies, so that it will be very easy or risk free for the investors to take an appropriate financial decision about the investment in the stock, bonds, mutual funds, etc. What constraints might it put on a company? Constraints that the SEC may put on a company are selling procedures; SEC imposes legal restrictions on companies to protect investors. Companies must put direct monetary cost of borrowing shares. Companies must maintain 50% marginal requirement. Reference Gitman, L. (2006). Principles of Managerial Finance (11th ed.). New York, NY: Pearson, Addison Wesley.
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Discussion Question # 2 What would you consider to be a global equivalent(s) to the SEC within the USA? Established in 1995, the World Trade Organization (WTO) would be the global equivalent to the
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This note was uploaded on 02/26/2012 for the course FIN 419 taught by Professor Abdul during the Fall '11 term at University of Phoenix.

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FIN 419 Week 5 Complete DQS 1 to 4 - FIN 419 Week 5...

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