Ch 19 Class Notes Flashcards Preview

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Flashcards in Ch 19 Class Notes Deck (7):
0

Security

Created when someone takes some money and places it in
Someone else's hand to generate return

1

Prior to what year was there no regulation on securities?

1929

2

What are both the Securities Act of 1933 and the Securities and Exchange Act of 1934 designed for?

To provide full disclosure

3

Securities Act of 1933

Regulates security disclosure

SEC monitors and regulates to allow security to be sold to
Investors

4

Securities and Exchange Act of 1934

Regulates traders and mutual funds

Regulates insider trading

5

Penalties imposed by securities laws

Both civil and criminal (depends on intent)

6

State Laws AKA Blue Sky laws

Usually mirror federal laws

Can go further in protecting consumers, but not allowed to
Favor businesses