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 extend option scandals took perceptivity 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 recognize 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 provender trade places. Elements of Securities Financial backbone of the US economy. Efficient operation is fundamental to growth. Pensions Finicing company operations Corporate Finance A shelter is one of two things: Debt of original forms (notes, bonds, etc) Equity (common stocks Securities admit capital for business o perations, capture a business started or growing 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 whitethorn trade them on the securities market. Usually handled by bond traders. Securing a loan from large lenders which may overly be sold. & bunghole; Amount of dept • Length of the dept period • Debt refund method • Interest rate Equity gentility funds by dint of stock sale = equity financing. buyer owns a pluck of the company and have a fill 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. blue air SKY LAWS 1st was Kansas 1911 Beginnings of Federal Regulation The stock market crash of 1929. Market was actually an accurate predictor of prox events but ma ny people blamed the stock market crash for ! the depression. Thus politics entered and so did regulation....If you want to countenance a full essay, order it on our website: OrderEssay.net

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