Ch 19 Class Notes Flashcards
0
Q
Prior to what year was there no regulation on securities?
A
1929
1
Q
Security
A
Created when someone takes some money and places it in
Someone else’s hand to generate return
2
Q
What are both the Securities Act of 1933 and the Securities and Exchange Act of 1934 designed for?
A
To provide full disclosure
3
Q
Securities Act of 1933
A
Regulates security disclosure
SEC monitors and regulates to allow security to be sold to
Investors
4
Q
Securities and Exchange Act of 1934
A
Regulates traders and mutual funds
Regulates insider trading
5
Q
Penalties imposed by securities laws
A
Both civil and criminal (depends on intent)
6
Q
State Laws AKA Blue Sky laws
A
Usually mirror federal laws
Can go further in protecting consumers, but not allowed to
Favor businesses
