Responsibilities for Offering of Securities

Topics: U.S. Securities and Exchange Commission, Finance, Corporate finance Pages: 2 (749 words) Published: July 12, 2012
The federal law requires disclosure of material information in order to ensure the quality and fairness of an offering. I believe this responsibility should be shared responsibility between all parties including the investment bankers, the securities lawyers, and most importantly the managers and the directors of the issuing company have the duty to ensure the quality and fairness of an offering. Investment banker’s have the duty to advise their clients on high level issues of financial organization. They manage the issuance of bonds, recommend and execute strategies for taking over and merging with other companies, and handle selling a company’s stock to the public. They act as an underwriter or agent for corporations and municipalities issuing securities. Most also maintain broker /dealer operations, maintain markets for previously issued securities and offer advisory services to investors. We can decipher here that the investment bankers have the responsibility to advice investors on the securities that are being offered to them in order to be able to make informed decisions about choices of securities and their best options to purchase. Also, the securities lawyers have the shared duty to ensure the quality and fairness of an offering. The securities lawyer’s exists because of unique informational needs of investors. Securities are not inherently valuable; their worth comes only from the claims they entitle their owner to make upon the assets and earnings of the issuer or the voting power that accompanies such claims. The value of securities depends on the issuer's financial condition, products and markets, management, and the competitive and regulatory climate. Securities laws and regulations aim at ensuring that investors receive accurate and necessary information regarding the type and value of the interest under consideration for purchase. We can see here also, that the securities lawyer has the responsibility to provide certain information...
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