MGMT 200 Chapter Notes - Chapter 16: Financial Statement, Class Action, Boeing
Document Summary
May be a 1) debt or 2) equity: ex. 1) bonds and 2) common stock: represents value in something real, debt security: specifies amount owed, when and how payments are made, and rate of interest. Blue sky law: state security law makes sure securities are valid. Federal regulation: securities act of 1933 regulates public offerings of securities when first sold, securities exchange act of 1934 regulates trading of existing securities and requires public disclosure from corporations that have issued these securities, sec. In a common enterprise (capital is pooled: the investment of money, with an expectation of profits, generated by the efforts of persons other than the investors, higher legal protection for securities. Securities exempt from regulation: 1933 and 1934 acts exempt, debts issued or guaranteed by fed, state, or local gov. Issued by banks, religious and charitable organizations, insurance policies, and annuity contracts.
