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20 Cards in this Set
- Front
- Back
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Laws imposed by individual states to regulate sellers of securities
Intended to prevent investors from being sold nothing but “blue sky” |
Blue sky laws
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Required full disclosure of information by companies
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Securities Exchange Act of 1933
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Established SEC as government regulatory body
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Securities Exchange Act of 1934
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What type of markets does the Securities Exchange Act of 1934 regulate?
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organized exchanges and otc market
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was an amendment of the securities exchange act of 1934 that Allowed self-regulation of securities industry through trade associations such as the National Association of Securities Dealers (NASD)
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maloney act of 1938
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Created & regulated mutual funds
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Investment Company Act of 1940
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Required investment advisers to make full disclosure about their backgrounds and their investments, as well as register with the SEC
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Investment advisers act of 1940
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Abolished fixed-commissions and established an electronic communications network to make stock pricing more competitive
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Securities Acts Amendments of 1975
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Prohibited insider trading on nonpublic information
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insider trading and fraud act of 1988
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Tightened accounting and audit guidelines to reduce corporate fraud
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sarbanes-oxley act of 2002
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who receives the proceeds of sales in the primary market?
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issuer
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Before offering its securities for public sale, the issuer must register them with and obtain approval from
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Securities and Exchange Commission (SEC)
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What is the main activity of the investment banker
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underwriting
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This process involve purchasing the security issue from the issuing corporation at an agreed on price and bearing the risk of reselling it to the public at a profit.
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underwriting
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group formed by investment banker to share the financial risk of underwriting
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Underwriting Syndicate
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other brokerage firms that help the underwriting syndicate sell issue to the public
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selling group
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public announcement of issue and role of participants in underwriting process
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tombstone
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typically in the form of a discount on the sale price of the securities
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investment banker compensation
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The secondary market Gives securities purchasers
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liquidity
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What is the role of the secondary market?
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Provides liquidity to security purchasers
Provides continuous pricing mechanism |
