LAW 3102 Lecture Notes - Lecture 31: Crowdfunding, Financial Statement
1. to ensure more transparency in financial statements so investors can make informed
decisions about investments and
2. to establish laws against misrepresentation and fraudulent activities in the securities
market
1. registration
a. required to register with SEC
b. supervises anything and everything shares related (debt or stocks, crowdfunding)
2. Prospectus
a. issuer must submit information that will form the basis of the prospectus to
provided to prospective investors
b. must submit additional info that does not go into the prospectus but is accessible
to the public
3. Exemptions
Securities Exchange Act of 1934
- secondary market after issuance takes place
- provide governance of securities transaction on the secondary market
- regulate the exchanges and broker dealers to protect investors
Req’s include registration of any securities listed on stock exchanges, disclosure, proxy,
solicitations and margin and audit requirements
SEC was created through this Act
Document Summary
1. to ensure more transparency in financial statements so investors can make informed decisions about investments and. 2. to establish laws against misrepresentation and fraudulent activities in the securities market. 1. registration a. b. required to register with sec supervises anything and everything shares related (debt or stocks, crowdfunding) Prospectus a. issuer must submit information that will form the basis of the prospectus to provided to prospective investors: must submit additional info that does not go into the prospectus but is accessible to the public. Securities exchange act of 1934 secondary market after issuance takes place provide governance of securities transaction on the secondary market regulate the exchanges and broker dealers to protect investors. Req s include registration of any securities listed on stock exchanges, disclosure, proxy, solicitations and margin and audit requirements. Dodd frank amended 1933 and 1934 acts and added rules relevant to publicly held companies for more protection.
