Soft Bound Version for Advanced Accounting 13th Edition
Soft Bound Version for Advanced Accounting 13th Edition
13th Edition
ISBN: 9781260110579
Author: Hoyle
Publisher: McGraw Hill Education
Question
Book Icon
Chapter 12, Problem 1Q
To determine

Describe why federal securities laws were originally enacted by Congress.

Expert Solution & Answer
Check Mark

Explanation of Solution

In 1902, the Industrial Commission suggested that all companies owned by public are needed to disclose necessary information which includes the yearly financial reports. The Congress enacted two primary pieces of the legislation of securities which are designed for restoring the trust of the investors for the capital market.

1. The Securities Act of 1933, which is known as truth in securities law which regulates the primary offerings of securities by a company or underwriter.

2. The Securities and Exchange Act of 1934 created the SEC which regulates that the securities are traded through brokers and exchanges.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
Why were federal securities laws originally enacted by Congress?
Which are the Federal and State Securities Authorities?
What was established as a result of the passage of the Dodd Frank law by Congress to provide incentives to assist in the enforcement of federal securities law violations?

Chapter 12 Solutions

Soft Bound Version for Advanced Accounting 13th Edition

Knowledge Booster
Background pattern image
Recommended textbooks for you
Text book image
Entrepreneurial Finance
Finance
ISBN:9781337635653
Author:Leach
Publisher:Cengage
Text book image
CONCEPTS IN FED.TAX., 2020-W/ACCESS
Accounting
ISBN:9780357110362
Author:Murphy
Publisher:CENGAGE L
Text book image
Intermediate Financial Management (MindTap Course...
Finance
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Cengage Learning
Text book image
Business/Professional Ethics Directors/Executives...
Accounting
ISBN:9781337485913
Author:BROOKS
Publisher:Cengage