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Busn 115 Week 1 Analysis

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Busn 115 Week 1 Analysis
Analyzing the Importance of Laws in United States
BUSN-115
Sept. 20th, 2014
Introduction
In the United States, the public capital markets are controlled basically by the U.S. Securities and Exchange Commission (SEC). The laws that helps and provides the SEC the permission to define the form and content of the financial reports filed with the Commission. The SEC is accountable for administering federal securities laws written to give protection for investors. (Skousen, K. Fred, 1991). At the beginning of the 21st century, the finding of accounting malpractices among many popular American companies bought demand for SEC activities. However, in 1934 the federal agency established to accomplish the provisions of the SEC Act and to safeguard …show more content…
Generally, federal laws apply to citizens living in the U.S. and its regions. The state laws apply just to residents of the particular state. The president of United States is accountable for implementing and accomplishing the laws written by the congress. The federal courts verify these laws according to the U.S constitution. The authorized federal agency discloses a final rule in the federal register with a particular date for when the rule will become effective and enforceable. State legislatures generate and pass bills and then the state governor converts them into laws. The state courts may analyze these laws according the rules of state’s …show more content…
(Skousen, K. Fred, 1991). The Securities Act of 1933 also called as the truth in securities law, the goal of this Act is to restrict misrepresentation and also that controls fraudulent activities in the sale of securities. (Gretchen Morgenson, 2010). This Act provides required information to investors regarding securities offered for public sale. The SEC confirms that these goals are attained. Securities Exchange Act of 1934, this Act was generated to give the administration of securities transactions on the secondary market and to safeguard the investing public that controls the exchanges and broker-dealer. According to the U.S. government sources the SEC was generated from this Act and this Act regulates the commerce in stocks, bonds, and other securities. The Act permitted the SEC to break up any needless big utility combinations into smaller, geographically based organizations and to set up federal commissions to control rates and financial activities. Public Utility Holding Company Act of 1935, this Act regulates interstate holding organizations occupied in the electric utility business or in the retail distribution of natural product like gas. Trust Indenture Act of 1939, this Act plays a significant
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