GB110 Chapter Notes - Chapter 9: Blue Sky Law, Initial Public Offering, Sarbanes–Oxley Act

• School: Bentley University
• Department: Information and Process Management/General Business Courses
• Course: GB110
• Professor: Alexander

Document Summary

Chapter 9 sale of securities and investor protection. Securities are not limited to stocks and bonds: an investment contract is any transaction in which a person: In a common enterprise: reasonable expecting profits, derived primarily or substantially from others" managerial or entrepreneurial efforts, this is called the howey test. Plays a critical role in protecting private and institutional investors. Help minimize the risk of investing in companies by reviewing and monitoring the information companies are required to generate and disseminate to the general public. Help control the various stock markets: mission of the sec. Protect investors: maintain fair, orderly, and efficient markets. Facilitate capital formation: helps provide a well-controlled stock market and instill confidence in the investing public. To help ensure that private and institutional investors receive accurate, complete, and valid information about publicly held companies. Complete a prospectus, which describes the mission and objectives of a business along with details about a company"s business operations.