Securities Law and Going Public
Securities Exchange Act of 1934
Congress created the SEC with this Act. The act gives the Securities Exchange commission authority over the entire securities industry and allows them to oversee brokerage firms, industry agents, and self regulatory organizations or SRO’s. The SEC is the agency you deal with to go public.
Large companies, with more than $10 million in assets and whose stock is held by 500 people or more must disclose yearly reports, which are available through the EDGAR database.
The SEC laws forbid any fraud connected with the offer, purchase, or sale of securities. These laws govern the industry and may result in disciplinary actions, such as actions against individuals involved in insider trading. Insider trading is a direct violation of SEC laws.
The president of Tiber Creek studied securities law to become a securities attorney.