Analyzing the Importance of Laws in United States
Sept. 20th, 2014
In the United States, the public capital markets are controlled basically by the U.S. Securities and Exchange Commission (SEC). The laws that helps and provides the SEC the permission to define the form and content of the financial reports filed with the Commission. The SEC is accountable for administering federal securities laws written to give protection for investors. (Skousen, K. Fred, 1991). At the beginning of the 21st century, the finding of accounting malpractices among many popular American companies bought demand for SEC activities. However, in 1934 the federal agency established to accomplish the provisions of the SEC Act and to safeguard the investing public by restricting manipulation, fraudulent activities of large companies, and other exploitations and corruptions in the securities markets. (Skousen, K. Fred, 1991). The purpose of this paper is to analyze the importance of laws and their effectiveness in the United States. Key words: Securities and Exchange Commission (SEC), foreign privacy laws, and business malpractices. The United States Laws
The laws of both State and Federal government play an important role in protecting the public from fraudulent activities and business malpractices. Generally, federal laws apply to citizens living in the U.S. and its regions. The state laws apply just to residents of the particular state. The president of United States is accountable for implementing and accomplishing the laws written by the congress. The federal courts verify these laws according to the U.S constitution. The authorized federal agency discloses a final rule in the federal register with a particular date for when the rule will become effective and enforceable. State legislatures generate and pass bills and then the state governor converts them into laws. The state courts may analyze these laws according the rules of state’s constitution....
References: SEC. (July 29, 2010). U.S. Securities and Exchange Commission Press Release. Skousen, K. Fred. (1991). An Introduction to the SEC. South Western Publishing. Gretchen Morgenson, (2010). "Lending Magnate Settles Fraud Case" The New York Times
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