Chapter Notes Business Law

Enron and Worldcom – financial scandals of the ages. Thousands of lost jobs and retirement funds. Congress responds by toughening federal official securities laws. Shortly forgotten when Martha Stewart went to jail. Soon hold option scandals took delicacy of the countries minds – they picked a value of the stock from a date in the past when the stock was low in price and took accredit entry for having earned stock options at that point – backdating stock options. These kick in all served to undermine confidence in our securities system. The SEC is an pregnant and primary regulator of US Securities nourishment marketplaces. Elements of Securities Financial backbone of the US economy. Efficient operation is classic to growth. Pensions Finicing company operations Corporate Finance A warrantor is one of two things: Debt of certain forms (notes, bonds, etc) Equity (common stocks Securities admit smashing for business operatio ns, capture a business started or profit its size. Debt Bonds are sold as an issue of a certain amount ie: 10,000 bonds at $10,000 each = $100m must(prenominal) be repaid to holders who may trade them on the securities market. Usually handled by bond traders. Securing a loan from large lenders which may overly be sold.

& jackfruit; Amount of dept • Length of the dept period • Debt repayment method • Interest rate Equity procreation funds by dint of stock sale = equity financing. buyer owns a pluck of the company and have a shout on a portion of the prox profits No liability to repaqy shareholders Risk – Reward Origins of Securities Regulation cheat ! in the sale of securities to the public led to state laws set sales. easy SKY LAWS 1st was Kansas 1911 Beginnings of Federal Regulation The stock market crash of 1929. Market was actually an accurate predictor of approaching events but many people blamed the stock market crash for the depression. Thus politics entered and so did regulation....If you want to fill a full essay, order it on our website: OrderEssay.net

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