Chapter Notes Business Law

Enron and Worldcom – financial scandals of the ages. Thousands of lost jobs and retirement funds. Congress responds by toughening national securities laws. Shortly forgotten when Martha Stewart went to jail. Soon neckcloth option scandals took pinch of the countries minds – they picked a value of the stock from a date in the past when the stock was low in price and took acknowledgement entry for having earned stock options at that point – backdating stock options. These kick in all served to undermine confidence in our securities system. The SEC is an pregnant and primary regulator of US Securities pabulum markets. Elements of Securities Financial backbone of the US economy. Efficient operation is strategic to growth. Pensions Finicing company operations Corporate Finance A surety is one of two things: Debt of certain(a) forms (notes, bonds, etc) Equity (common stocks Securities admit chief city for business operations, capture a business started or gain its size. Debt Bonds are sold as an issue of a certain amount ie: 10,000 bonds at $10,000 each = $100m must(prenominal) be repaid to holders who may trade them on the securities market. Usually handled by bond traders. Securing a loan from large lenders which may overly be sold.

& establish; Amount of dept • Length of the dept period • Debt quittance method • Interest rate Equity aggrandizement funds by dint of stock sale = equity financing. purchaser owns a pluck of the company and have a plead on a portion of the prox profits No liability to repaqy shareholders Risk – Rewar d Origins of Securities Regulation ch! eat in the sale of securities to the public led to state laws set sales. blue SKY LAWS 1st was Kansas 1911 Beginnings of Federal Regulation The stock market crash of 1929. Market was actually an accurate predictor of upcoming events but many people blamed the stock market crash for the depression. Thus politics entered and so did regulation....If you want to capture a full essay, order it on our website: OrderEssay.net

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