Securities Law - Research Paper Example

Securities Law Introduction Securities Law is a body of rules and regulations dealing with securities,shares, stocks, bonds and debentures. The government or corporations do the work of issuing securities. Securities law is a form of payment that evident the ownership of dividends and other financial obligations. Various investments scenarios are available at the securities level. Some information is extremely essential for an investor to know. This information may sometimes not be available in other texts.

Federal Securities and Blue Sky Laws Variety of regulation affects securities. This effect is attributable to the nature of the business. Some of the rules include the securities commission of exchange and the securities dealers of the national commission.This is a paramount concern to the security laws of various Exchanges and the NASD. Every state in America must observe the Blue Sky Laws. Shelf Registration Any one individual in possession of a substantial amount of the dollar for transaction purposes ought to conduct business effectively.

No restrictions will be imposed on such an individual provided one is registered. Furthermore, no further approval is required by the SEC (Bartos, 2006). Corporate Reporting and Supply Chain The issue of corporate reporting consists of produce and consumption of corporate reports and critical analysis of the extensive parties and evaluation. The standards applied involve the compliance with the American Chamber of Qualified Accountants and regulators of the market (Sims & Quatro, 2005). Disclosure Requirements The corporations as governed by the need for disclosure ought to require adequate provisions.

All of the necessary material adjustments needs be accounted as per the rule. Some of the issues subjected to disclosure involves the arrangements, financial obligations, the off balance sheet transactions and the related party transactions. It is also an appropriate procedure to observe all issues pertaining to pro forma information. This will cover the material facts that effect any decision making by the management. Auditing of the Transactions Auditor requirement is another issue of prime importance.

The auditor ought to be independent and having an objective thinking. This forms part of the best code of practice. The reports of the auditor require direction to the respective body, particularly to the audit committee. Any intention aimed at eliminating the mentality of the joint venture related businesses is reject able. This case happened with the Enron. The company operation does not require rigid lines of communication. This will allow efficient movement of the information upwards and downwards.

Timing of information provided to investors is another decision point. This is the determination point to see to it that a transaction meets the conduct threshold period. Foreign securities It is weighty and profitable to invest in the international markets. This is an expensive trend and very risky portfolio. Fortunately, the return from the foreign investment is very high. The success of international investment depends upon the influence by the access to the information, the operation of the market and the presence of the withholding taxes.

The capability of a fund manager to invest emanates upon the ability to maneuver properly. The threats to overall success involve the presence of political and economic currency trends in a particular market. Interposition The presence of an internal intermediary exerts an effect to the nature of trading. A third party is the broker who will to see it that the trade conduct meets necessary parameters. The broker will facilitate trade between the concerned stakeholders. The presence of a market broker means that the parties must part with a significant amount that becomes payable as brokerage commission.

References Bartos, J. (2006). United States Securities Law: A Practical Guide. Washington D.C. Kluwer Law International Sims, R. & Quatro, S. (2005). Leadership: Succeeding the Private, Public, and Not-for – profit Sectors. New York: M.E Sharpe