Which securities market regulations deal with each of the following? a. Requires disclosure of relevant information on initial public offerings and registration with the FTC. b. Created the Securities and Exchange Commission (SEC). c. Protects investors against unethical investment advisors by requiring advisors to register with the SEC. d. Established up to $500,000 of insurance to cover investors' account balances in the event that their brokerage firm goes bankrupt. e. Makes it illegal to trade securities while in the possession of inside information

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Business

Savion Lam

4 August, 06:10

Which securities market regulations deal with each of the following? a. Requires disclosure of relevant information on initial public offerings and registration with the FTC. b. Created the Securities and Exchange Commission (SEC). c. Protects investors against unethical investment advisors by requiring advisors to register with the SEC. d. Established up to $500,000 of insurance to cover investors' account balances in the event that their brokerage firm goes bankrupt. e. Makes it illegal to trade securities while in the possession of inside information

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Carlos · Answer 1

A. Due to much of the ambiguities, insider trading and accounting anomalies happened especially during 1929

Securities Act of 1933 and Securities Exchange Act of 1934 was bought into effect in order to disclose relevant information to the public aka investors on initial public offerings, tender offers etc.

B. During 1920s many bankers, brokers etc took advantage of the post war prosperity and made huge money.

Many of the retail investors lost their wealth. So in order to retain the investor confidence after the great depression

Congress passed Securities Act of 1933 and Securities Exchange Act of 1934 these laws together created the SEC.

C. Investment Advisors Act of 1940 deals with the investment advisors to avoid unethical investment advices. Its main motive is to protect the investors. This Act was amended in 1996 and 2010, generally only advisers who have at least $100 million of assets under management or advise a registered investment company must register with the Commission.

D. Investment Company Act of 1940.

This act mainly deals with the companies like mutual funds that engage primarily in investing, reinvesting, etc and whose own securities are offered to the investing public. This regulation is due to its complexity. The Act requires these companies (funds, etc) to disclose their financial condition, investment policies and all the relevant prospectus to investors during IPOs and update it on a regular basis. This is to protect the investors.