The Security And Exchange Commission

1. The SEC is often called the “watchdog” of corporate America. How does it assist in preventing fraud?

The US Securities and Exchange Commission (SEC) is the US federal agency that holds the primary mandate to enforce federal securities laws and regulations to control the securities industry and the country’s stock exchange and regulation of all activities and organizations including the US electronic securities market. The SEC is committed to promoting a market environment that yields public trust characterized by integrity to attain its mission of protecting investors through maintenance of fair and efficient markets through facilitation of capital information (Basagne, 2010). The SEC financing is a major area of focus since there has been major concern regarding the SEC agency financing and whether they utilize the

The Securities and Exchange Commission has the mission of protecting investors by maintaining fair, orderly and efficient markets. The SEC does this in a number of ways, and firms need to pay attention to these ways in order to ensure SEC compliance. The SEC has enforcement authority over a number of areas related to the nation's capital markets, including insider trading, accounting fraud, and providing false information. The SEC's jurisdiction extends to all securities that are traded publicly. Privately-held companies do not need to register with the SEC (SEC.gov, 2012).

The Security and Exchange Commission is the organization who monitors fraudulent transactions and insider trading. Some experts in ethical behavior consider inside trading the most dramatic form of utilitarian ethics.

The SEC assists in providing investors with reliable information upon which to make investment decision. The Securities Act of 1933 requires most companies planning to issue new securities to the public to submit a registration statement to the SEC for approval. The Securities Exchange Act of 1934 provides additional protection by requiring public companies and others to file detailed annual reports with the commission. Smackey Dog Food, need to file next forms:

“There must be a strict supervision of all banking and credits and investments; there must be an end to people’s speculation with other money (pg 92).” The SEC was designed to keep security on Wall Street.

In 1934, the United States created the Securities Exchange Act of 1934 which is a law to investigate companies that violate federal securities and files criminal charges when companies are in violation. However, one of the most important

The New York Stock Exchange has worked to become less exclusive to wealthy investors by opening itself to the public and allowing women to be on the exchange floor, something that was not allowed before 1943. Through its registration as a nonprofit organization and the government’s creation of the SEC, the New York Stock Exchange has worked to provide security for the public’s investments. Some of the security measures in place are requiring companies to provide detailed financial reports as well as financial operations. It has also worked to increase efficiency by upgrading technology to handle the workload of transactions that occur

The illegal construction of the Bernie Madoff securities pyramid scheme grew to preposterous proportions from legal, auditing, and regulatory weaknesses of the Securities Exchange Commission, the designated regulatory body of the U.S. financial markets. The required expertise, authority, and relevant penalties needed to deter management from committing ethical breaches lacked substance in the case study of BMIS (Crews 11). Even after the wake of the Enron and WorldCom scandals that occurred in the early 2000s, the SEC unexplainably revoked provisions created to help avoid fraud. The provision the SEC revoked specifically mandated firms structured like Madoff’s to be audited by accounting firms registered and audited by the Board. By revoking the provision, BMIS was allowed to continue its Ponzi scheme for another half a decade with the aid of utilizing an unregistered, small accounting firm called Freihling & Horowitz (“Madoff’s Jenga”

The SEC reportedly uses examinations, tips, complaints, referrals and coordination with other regulators in order to propose remedies specific for offenses capable of extending to problematic future destinations, and it (SEC) is successfully detecting and ordering penalties and disgorgements in the ever-widening circle of its governance of the Dodd-Frank Act.

Moving forward, the investors are are using Section 10(b) of the Securities Exchange Act as their main defense. The Securities Exchange Act of 1934 was created to provide governance of securities transactions on the secondary market and regulate the exchanges and broker-dealers in order to protect the investing public. All companies that are listed on stock exchanges must follow these

The federal law requires disclosure of material information in order to ensure the quality and fairness of an offering. I believe this responsibility should be shared responsibility between all parties including the investment bankers, the securities lawyers, and most importantly the managers and the directors of the issuing company have the duty to ensure the quality and fairness of an offering. Investment banker’s have the duty to advise their clients on high level issues of financial organization. They manage the issuance of bonds, recommend and execute strategies for taking over and merging with other companies, and handle selling a company’s stock to the public. They act as an underwriter or agent for corporations and municipalities

The Securities Act of 1933 and the Securities Exchange Act of 1934 required investment banks to make full disclosures of securities offerings in investment prospectuses and charged the SEC with reviewing them. This legislation also required companies to regularly file financial statements in order to make known changes in their financial position. As a result of these acts, bidding for investment banking projects became competitive as companies began to select the lowest bidders and not rely on major traditional companies such as Morgan Stanley and Kuhn, Loeb.

Comparative statistics of abnormal activities in securities transactions found by Surveillance Department during 2011-2012 and actions undertaken by SEC are given below:

Moreover, a look at our neighboring securities regimes allows for inputs from sophisticated systems of securitization. The regulatory frameworks in Malaysia and Singapore not only provides for regulatory agencies for domestic corporations in their respective stock exchange but includes in their respective market infrastructure agencies for international business