ADVANCED ACCT.,SEL.CH.-W/ACCESS>CUSTOM<
14th Edition
ISBN: 9781307566574
Author: Hoyle
Publisher: MCG
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Question
Chapter 12, Problem 1Q
To determine
Describe why federal securities laws were originally enacted by Congress.
Expert Solution & Answer
Explanation of Solution
In 1902, the Industrial Commission suggested that all companies owned by public are needed to disclose necessary information which includes the yearly financial reports. The Congress enacted two primary pieces of the legislation of securities which are designed for restoring the trust of the investors for the capital market.
1. The Securities Act of 1933, which is known as truth in securities law which regulates the primary offerings of securities by a company or underwriter.
2. The Securities and Exchange Act of 1934 created the SEC which regulates that the securities are traded through brokers and exchanges.
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Chapter 12 Solutions
ADVANCED ACCT.,SEL.CH.-W/ACCESS>CUSTOM<
Ch. 12 - Prob. 1QCh. 12 - Prob. 2QCh. 12 - Prob. 3QCh. 12 - Prob. 4QCh. 12 - Prob. 5QCh. 12 - Prob. 6QCh. 12 - Prob. 7QCh. 12 - Prob. 8QCh. 12 - Prob. 9QCh. 12 - Prob. 10Q
Ch. 12 - Prob. 11QCh. 12 - Prob. 12QCh. 12 - Prob. 13QCh. 12 - Prob. 14QCh. 12 - Prob. 15QCh. 12 - Prob. 16QCh. 12 - Prob. 17QCh. 12 - What is the purpose of Financial Reporting...Ch. 12 - Prob. 19QCh. 12 - What is the purpose of a registration statement?Ch. 12 - Prob. 21QCh. 12 - Prob. 22QCh. 12 - Prob. 23QCh. 12 - Prob. 24QCh. 12 - Prob. 25QCh. 12 - What is a prefiling conference, and why might it...Ch. 12 - Prob. 27QCh. 12 - Prob. 28QCh. 12 - Prob. 29QCh. 12 - Prob. 30QCh. 12 - Prob. 31QCh. 12 - Prob. 32QCh. 12 - Prob. 33QCh. 12 - What is the purpose of the Managements Discussion...Ch. 12 - Prob. 35QCh. 12 - Prob. 36QCh. 12 - Prob. 1PCh. 12 - Prob. 2PCh. 12 - Prob. 3PCh. 12 - Prob. 4PCh. 12 - Prob. 5PCh. 12 - Prob. 6PCh. 12 - Prob. 7PCh. 12 - Prob. 8PCh. 12 - Which of the following is a registration statement...Ch. 12 - Prob. 10PCh. 12 - Prob. 11PCh. 12 - Prob. 12PCh. 12 - Prob. 13PCh. 12 - Prob. 14PCh. 12 - Prob. 15PCh. 12 - Prob. 16PCh. 12 - Prob. 17PCh. 12 - Prob. 18PCh. 12 - Prob. 19PCh. 12 - Prob. 20PCh. 12 - Prob. 21PCh. 12 - Prob. 22PCh. 12 - Prob. 23PCh. 12 - Prob. 24PCh. 12 - Prob. 25PCh. 12 - Prob. 26PCh. 12 - Explain each of the following items: a. Staff...Ch. 12 - Prob. 28P
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Similar questions
- Compare the purchase and sale of government securities with the purchase and sale of agency securities.arrow_forwardShould the federal government tax the interest payments an investor receives on a Treasury Bondarrow_forwardUnder which of the following markets short term government securities are traded? a.Bond Market b.Capital Market c.Stock Market d.Money Marketarrow_forward
- Explain the disclosure requirements of the 1933 Act, including which securities and transactions are exempt from these disclosure requirements.arrow_forwardDo you think issuing bonds by the government is effective and does it achieve its purpose?arrow_forwardWhat are the defenses that someone can take to charges of violations under the 1933 securities act?arrow_forward
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