Responsibilities for Offering of Securities Essay

759 WordsJul 26, 20124 Pages
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…show more content…
According to the information on the SEC website, all investors, whether large institutions or private individuals, should have access to certain basic facts about an investment prior to buying it, and so long as they hold it. The SEC requires public companies to disclose meaningful financial and other information to the public. This provides a common pool of knowledge for all investors to use to judge for themselves whether to buy, sell, or hold a particular security. Only through the steady flow of timely, comprehensive, and accurate information can people make sound investment decisions. According to The Securities Act of 1933, the law requires full disclosure of information relevant to the securities been offered to the public. The Securities Act of 1933 provides that the investors must be provided with the registration statement and the prospectus that describes the security being offered, the issuing corporation, and the investment or risks related to the security to promote sufficient info to enable sophisticated investors to evaluate the financial risk involved. It is through such disclosure and openness on the part of the directors of the issuing company that there can be an existence of quality and fairness of the offering to the investors. I believe that appointing an independent agency to oversee such offerings will be a further leap in the attempt to
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