Securities Exchange Act

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).

After the American Revolution which took place between 1775 to 1783 the number of securities increased dramatically. The amount of shares being bought grew so large that brokers had to organize in order to handle the growing volume. In 1800 the

Roosevelt knew that in order for other acts to pass the banks can not be closed. The first bill that was passed was the Emergency Banking Relief Act. This act required licenses for banks that were financially sound. Advisers of Roosevelt told him that there was not enough regulations for banks and the stock market. Roosevelt agreed and backed the Securities Act and the Glass-Steagall Act. The Securities Act created the Securities Exchange Commission which regulates stock trading and stops fraud and the Glass-Steagall Act created the Federal Deposit Insurance Corporation to provide government insurance for bank deposits. These acts increased people’s confidence in the banking system.

The effects of the Depression during the 1930’s still impact America today. The New Deal was passed to rebuild the economy after the Great Depression. William L. Niemi and David J. Plante discussed the meaning of the new deal to our economy today, “Under the New Deal regime there were more labor rights, less Supreme Court intervention in the economy, more public accountability in the structure of financial institutions driving the political economy, and a more equitable distribution of wealth”(Plante, Niemi, 413-427). Franklin Roosevelt created the New Deal, which was his plan to take America out of the Depression. He had three goals: relief, reform, and recovery. The New Deal set up policies that help us prevent future economic depressions and achieve long-term recovery. Policies that still stand and affect our economy today are the Securities and Exchange Commissions (SEC) and the Federal Deposit Insurance Corporation (FDIC). The SEC today still regulates the stock market and enforces laws that protect the industry. The SEC was used to restore the nations confidence in the economy after the Depression. The FDIC is an important part of America’s financial system. The FDIC was part of the Banking Act of 1933. The FDIC insures banks with a certain amount of money to make it a safer place to put your money in. Roosevelt

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 five divisions of the SEC are corporate finance, enforcement, economic and risk analysis, investment management, and trading and markets. The corporate

The Securities and Exchange Act of 1934 created government supervision over what occurs in the stock market. The FDIC was created to assure investors that their money would be covered and safe if the bank were to fail. The Federal Reserve Board and the Wheeler-Rayburn Act were also established. More and more government programs were created and all of these programs needed additional revenue to function. Americans realized that the government played a larger role than ever before in American life. U.S. citizens started to look more towards the White House than Capitol Hill after Roosevelt became President. According to Biles, the New Deal fell far short of a

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 New Deal Era in American history refers to the period in time where Franklin D. Roosevelt was president and passed various reform initiatives in order to improve the lives of those affected by the great depression. Some of the political reforms made in this time period include the Securities and Exchange Act, the Glass- Steagall Banking Act and the Social Security Act. The Securities and Exchange Act was passed in order to ensure that the stock market was being properly regulated and was meant to give both companies and investors more security in trading on the stock market. The Glass-Steagall Banking Act provided federal insurance for bank deposits made up to the amount of $2,500. This act specifically made it a more secure and safe exchange for people to deposit money into the bank and not have to worry about whether or not something would or could happen to it. These acts added much needed stability to the financial aspect of society and set the stage for American citizens to have a more financially stable future. The Social Security Act changed the lives of many senior citizens, disabled individuals and reliant children by providing monthly funds to be used at the discretion of the recipient.

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

Roosevelt quickly stepped up to take measures in fixing the economy in the country. The Glass-Steagall Act of 1933 was the one of the first government responses to the Great Depression. Drafted by Senator Carter Glass and Representative Henry Steagall, the act’s clear objective was to regain the lost confidence in the American financial institutions with two main provisions. First, the act restricts and limits commercial banking activities with investment banks. By separating the two, banks are allowed to operate more efficiently without the influence or risk of their counterpart, reducing the chances of another bank run.

These acts were a violation of the Securities Act of 1933. The objectives of the Securities Act of 1933 are that investors obtain accurate reports of a company's commerce and to prevent misleading securities sales (USSEC, 2007). Although, the USSEC cannot guarantee the information provided by each company; the Securities Act of 1934 grants authority to the USSEC with disciplinary authorization (USSEC, 2007).

For instance, with the help of the Federal Deposit Insurance Corporation(FDIC), Securities and Exchange Commission(SEC), and the Glass Steagall Act, the industries of the bank and stock market were able to become more stable, (“Impact of the New Deal”). This was another main goal of the New Deal. The beginning of the depression began with the crash of the stock market and being able to restore and regulate it is a major accomplishment that helped the nation gain more satisfaction in the economy. Also, this rise in banking and the stock market restored the trust and helped people gain more confidence in these industries, ("BBC - GCSE Bitesize: Overview"). Because of the past experiences, people could not trust their money in banks. But through the New Deal, people were able to gain back trust and know that their money is in safe keepings. This also helped people get inspired to hope that the depression was ending. Therefore, the rise of banking and the stock market had a major impact on America during the toughest times known as the

Further, under the Section 32 of the Act provides that the act shall be applicable in addition to any other law in force at a particular time which implies that the powers of SEBI co-exist with and cannot over-ride other regulators in the market. Several regulations have been framed under the SEBI Act for regulating different aspects of the securities market. In addition to its enabling Act, SEBI also operates under other legislations, which include the