Question

The following are Major laws govern the sale and trading of securities as well as reporting standards.

1.   Securities Act of 1933 was a response to abuses present in the securities markets during the Wall Street “crash” era. Its purpose was to provide full disclosure of all pertinent investment information on new corporate security issues.

2.  The Securities Exchange Act of 1934 created the Securities and Exchange Commission (SEC) and empowered it to regulate the securities markets.

3.  The Securities Acts Amendments of 1975 directed the SEC to supervise the development of a national securities market, prohibited fixed commissions on public transactions, and prohibited financial institutions and insurance companies from buying stock exchange memberships to save commission costs.

4.  The Sarbanes-Oxley Act of 2002 authorized an independent private-sector board to oversee the accounting profession. The act was in response to the many accounting frauds perpetrated on investors by companies such as Enron, World Com, and Tyco.

5.  In 2010 Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act. This is the most comprehensive financial reform legislation since the Great Depression. This act impacts banks, hedge funds, derivatives, credit cards, mortgages, and other financial products. It is an extremely complex law, so we can expect that regulatory agencies will continue crafting and implementing regulations for several years.

Which of these laws, in your opinion, is the most influential for those looking to invest in the capital markets and why?

Answer 1

The capital market is the market where financial securities are brought and sold. It is the financial market.

According to my opinion Securities Exchange Act of 1934 is the most influential for those looking to invest in the capital markets because this act was created to regulate, control the market, and ensuring greater financial transparency and accuracy and less fraud or manipulation.

The function performed under this Act

1.Regulation and control the market

2.Regulation of OTC markets.

3.Control unfair Trade practice