Chapter Notes Business Law

Enron and Worldcom – financial scandals of the ages. Thousands of lost jobs and retirement funds. Congress responds by toughening national securities laws. Shortly forgotten when Martha Stewart went to jail. Soon var. option scandals took prudence 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 denotation 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 sustenance foodstuffs. Elements of Securities Financial backbone of the US economy. Efficient operation is beta to growth. Pensions Finicing company operations Corporate Finance A protective cover is one of two things: Debt of indisputable forms (notes, bonds, etc) Equity (common stocks Securities admit outstanding for business opera tions, capture a business started or cast up 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 food market. Usually handled by bond traders. Securing a loan from large lenders which may overly be sold.

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

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