I. BACKGROUND – SECURITIES MARKETS AND REGULATION A. The Basics 1. Two types of securities transactions: a. Primary market transactions – issuer sells securities to marketplace b. Secondary market transaction – between two outside investors 2. How we protect consumers: a. Disclosure b. Process rule c. Bans d. Education e. Intermediaries ( profit-driven incentive to ensure quality 3. What is different
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Securities Regulation Outline Introductory Material Financial Products. Two ways to raise money: taking out loans from the bank‚ or issuing securities on the public market. Bank Loans Money in exchange for a promise to pay. Usually secured by some collateral. Commercial lending: one bank is “lead arranger” for others. Reduces exposure. Securities Stock. An ownership interest. Common stock. Voting rights! Dividends. Get paid last in a liquidation. Preferred stock. No voting rights as long as
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Securities Outline INTRODUCTION THE REGULATORY FRAMEWORK • Premise of securities regulation is that mandatory disclosure (as well as antifraud provisions) will equip securities investors and their advisors with the information to move capital to its optimal uses. • Purposes of securities regulation: o Assuring that when securities are created and offered to the public‚ investors have an accurate idea of what they are purchasing an interest in‚ and how much their interest
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written to you in connection with the prospectus dated XXXXXXX 20XX‚ filed by [Company Name]. In that connection we advise you that since December 31‚ 20XX‚ the date of the audited financial statements and the notes thereto included in the above prospectus‚ there were‚ with respect to [Company Name] and subsidiaries: (a) No significant changes affecting the December 31‚ 20XX financial statements and notes thereto incorporated by reference in the above prospectus; (b) No occurrences or discoveries
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Securities Regulation – Spring 2012 (Rose) Outline Class 1 Slides Federal Securities Regulation Seeks to: 1. Increase the amount of information available to investors about issuers through mandatory disclosure rules; and 2. To deter fraud (so the information disclosed is credible). Ultimate Goal: The accurate pricing of securities‚ which is essential to a well-functioning economy. How Securities Differ Importance of capital markets to society Importance of investment decisions
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Introduction The term “registered company” means a company starts its operation or formed by registration under Companies Acts 1965(1). A registered company is explained by the law as a person‚ a human being. This artificial person can own land and other property‚ enter into contracts‚ sue and be sued‚ have a bank account in its own name‚ owe money to others and be a creditor of other people and other companies‚ and employ people to work for it (2). Section 16(5) of the Companies Act 1965 states
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LGST101: Business Law AY 2011-2012‚ Term 1 Group 8 Project Written Analysis Tort of Negligence Prepared for: Professor Melvyn Chew Written By: Jamie Lim Jia Qi (#12) Joel Koh Yong Kiat (#14) Low Hwan Hong (#23) Oh Zhan Yuan (#24) Ong Hui Ming Maria Nicolette (#25) G12 Throughout the course of this report‚ to determine if the plaintiff is owed a duty of care in negligence‚ we will adhere by the Singapore single test of negligence laid out in the case of Spandeck Engineering
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involved in evaluating the net realizable value of inventory. RESPONSIBILITY OF AUDITOR 1. Measure and record transaction data 2. Assess the risk of material misstatement in management’s financial statements 3. Classify and summarize recorded data 4. Obtain and evaluate evidence to respond to risks of material misstatement in the financial statements 5. Evaluate reasonableness of accounting estimates 6. Obtain reasonable assurance that financial statements are presented fairly in
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statements for the year ended on June 30‚ 2011 with the Prospectus‚ which do not give a true and fair view of the state of the company’s affairs. For this unfair practice AppolloIspat Complex Limited and ICB Capital Management Limited have been punished. Objectives of study: This report is based on study purpose and the objective of the report is to gather knowledge about law and punishment procedures regarding financial misstatement and auditing scandal maintained in Bangladesh. Analyzing
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Definition – Clauses. Articles of Association – Definition – Contents – Distinction between Memorandum of Association and Articles of Association – Alteration of Memorandum of Association and Articles of Association. Prospectus – Meaning – Contents – Statement in Lieu of Prospectus. INTRODUCTION Industrial has revolution led to the emergence of large scale business organizations. These organization require big investments and the risk involved is very high. Limited resources and unlimited liability
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