1933 Securities Act Summary

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 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:

The Securities Exchange Act of 1934 was passed by congress to strengthen the government’s control of the financial markets. It was preceded by the Securities Exchange Act of 1933 which was enacted during the Great Depression in hopes that the stock market crash of 1929 would not be repeated. The basic difference between the two acts was that the 1933 Act was to govern the original sales of securities by requiring that the issuers, the companies offering the securities, offer up sufficient information about themselves and the securities so that the potential buyers could make informed decisions. The 1934 Act was

The Glass-Steagall Act effectively built a Chinese wall between commercial and investment banking wherein the commercial banks were not allowed to trade securities or take part in the insurance business. It also prohibited the commercial banks from payment of interest on demand deposits and from engaging in inter-state operations. The act implemented Regulation Q which put ceilings on the interest rates the banks could pay on their time deposits say savings deposits. Regulation Q prevented the competitive interest rate wars that didn’t allow rates to reach unreasonably high levels. If rates had not been regulated then the banks would have been forced to lend at higher rates to remain profitable which would have led to riskier investments by them and failure problems would have followed. Looking at the evidence we see that from 1930 to 1933 more than 9000 commercial banks failed whereas, from 1934 to 1973 only 641 U.S banks were closed.[1] The act

Thus, the New Deal was implemented in order to provide relief and recovery as well as reform the US economy. One of these economic reforms involved the sale of securities which were previously not regulated at the federal level leading to a number of abuses. In response, FDR signed the Securities Act of 1933 to regulate the offer and sale of securities. In addition, the supporters of the New Deal also criticized the banking industry for its lack of transparency and control which was one the contributing factors to the Great Depression. Therefore, as part of the New Deal, the Banking Act of 1933 was passed in order to limit commercial bank securities activities, restrict speculative bank activities, and promote a federal system of bank deposit insurance.

The Social Security Act (SSA) of 1935 was drafted during the Great Depression as part of President Franklin D. Roosevelt’s New Deal. The SSA was an attempt to

Frank Act which brought in multitude of financial stipulations and rules that were aimed at

In August 14, 1935 Social Security was established by the founder of Franklin D. Roosevelt. Social Security had a program known as social insurance for what it consists of retirement, disability, and survivors’ benefits. Those benefits included taxes. Let’s go back in time and explore the history and issues that were involved in social security. (Social security of United States)

Glass Steagall Act limits activities, affiliations, and securities within commercial banks. It was passed after the great depression. Gramm-Leach-Bliley Act was passed in 1999 that enacts the U.S to control its way of financial institution deal while having the private information of other individuals. The point was to not let banks get into risky investment activities.

The Social Security Act (SSA) of 1935 was drafted during the Great Depression as part of President Franklin D. Roosevelt’s New Deal. The SSA was an attempt to limit what were seen as dangers in the American life, including old age, poverty,

The Banking Act of 1933 was passed by the United States Congress on June 16, 1933. The Banking Act of 1933 is also knows the Glass-Steagall Act, especially when referring to the principal provision of separating commercial banks and investment banking. The term Glass–Steagall Act, however, is most often used to refer to four provisions of the Banking Act of 1933 and only two of those provision restricted or limited commercial bank securities activities and affiliations between commercial banks and securities firms. That limited meaning of the term is described in the article on Glass–Steagall Legislation. Which means, an act to provide for the safer and more effective used of the assets of banks, to regulate interbank control, to prevent the undue diversion of funds into speculative operations, and for other purposes.

The Glass Steagall Act was passed on 1933, which is also known as The Banking Act to tighten regulation on the way banks did their business. This act was written as an emergency measure when about 5,000 banks failed during the Great Depression. Banks mostly failed because of the way they would invest with money. The act prohibits banks from investing money on investments that turn out to be risky. Banks could no longer sell securities or bonds. The act also created Federal Deposit Insurance Corporation (FDIC) to protect the deposits of individuals, which is still used to this date. The FDIC in this era insures your deposits in your bank up to $250,000. This gave the public confidence again to deposit their money in the bank. In 1933

Securities regulations began when Congress enacted the Securities Act of 1933 in reaction to the 1929 Stock Market Crash—the infamous start of the Great Depression. The legislature created the 1933 Act to safeguard the economy from experiencing another event like the Great Depression. The objective of the Securities Act of 1933 was to “require that investors receive financial and other significant information concerning securities being offered for public sale; and prohibit deceit, misrepresentations, and other fraud in the sale of securities.” In other words, the Securities Act of 1933 required issuers to fully disclose all material information that a reasonable shareholder would require in order to make up his or her mind about a potential investment. The Act focuses on governing offerings by issuers and creating transparency between issuers and investors so that investors receive more protection than prior to the Act.

U.S. Securities and Exchange Commission. Sarbanes-Oxley Act of 2002. Retrieve from: https://www.sec.gov/about/laws/soa2002.pdf. October 27, 2014.