Monday, April 27, 2009

regulation of security markets

Directly or indirectly, security markets in the united states are regulated under both federal and state lows.
the securities Act of 1993 was the first major legislation at the federal level. Sometimes called the "truth in securities" law, it requires registration of new issues and disclosure of relevant information by the issuer and prohibits misrepresentation and fraud in security sales.
The Securities Exchange Act of 1934 extended the principle of the earlier Act to cover secondary markets and required national exchanges and brokers and dealers to be registered.
Since 1934, both Acts (and subsequent amendments) have been administered by the Securities and Exchange Commission (SEC),a quasi-judicial agency of the U.S. government. It is run by five commissioners appointed by the president and confirmed by the Senate; each Commissioner serves for a five-year term. the commision is aided by a large permanent staff of lawers,accountants, economists , and others.
The SEC is the prime administrative agency for a number of other pieces of federal legislation. The public Utility Holding Company Act of 1935 brought such corporations under the Commission is Jurisdiction.

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