JP Morgan
Short Essays on the JP Morgan Trading Losses of the summer of 2012
LEG100
10/27/2013
JP Morgan
Organizations such as the Securities Exchange Commission and the Commodities Futures Trading Commission are independent agencies that are legally charged with regulating and providing guidelines for the trading and or exchanging of the goods and services within their respective jurisdictions. The Securities Act of 1934 has fully empowered the SEC to do a periodic evaluation of reports from companies that publicly trade their securities. The same act hands the SEC the powers to discipline individuals and entities that are regulated if found in breach of industry rules and regulation (Mahony, 1982). The Commodities Futures Trading Commission on the other hand was created in 1974 to protect individuals, the public and industry players from manipulation, fraud, and potentially abusive practices while at the same time fostering competitiveness, openness and creating markets that are sound (Teall, 2012).
There are four basic elements of a contract as Miller (2012) writes. The first important requirement in the formation of a contract is an agreement. In an agreement there should be a party that offers to enter into the legal agreement and another one that accepts the terms of the offer placed. The terms of the contract should contain wording that allows meeting of the minds of both parties that allows them to consciously read and or understand what is in store for them before they can agree mutually to proceed with the agreement.
Secondly, a consideration should be made in the value of the actual cost of what is being agreed upon. This consideration can be in the form of love and affection, money (legal tender), goods, services, or any form that the law has a capacity to recognize as a legal way of executing this contract.
In addition to an agreement and a consideration, a contract must have contractual capacity. The parties must be recognized by the
LEG100
10/27/2013
JP Morgan
Organizations such as the Securities Exchange Commission and the Commodities Futures Trading Commission are independent agencies that are legally charged with regulating and providing guidelines for the trading and or exchanging of the goods and services within their respective jurisdictions. The Securities Act of 1934 has fully empowered the SEC to do a periodic evaluation of reports from companies that publicly trade their securities. The same act hands the SEC the powers to discipline individuals and entities that are regulated if found in breach of industry rules and regulation (Mahony, 1982). The Commodities Futures Trading Commission on the other hand was created in 1974 to protect individuals, the public and industry players from manipulation, fraud, and potentially abusive practices while at the same time fostering competitiveness, openness and creating markets that are sound (Teall, 2012).
There are four basic elements of a contract as Miller (2012) writes. The first important requirement in the formation of a contract is an agreement. In an agreement there should be a party that offers to enter into the legal agreement and another one that accepts the terms of the offer placed. The terms of the contract should contain wording that allows meeting of the minds of both parties that allows them to consciously read and or understand what is in store for them before they can agree mutually to proceed with the agreement.
Secondly, a consideration should be made in the value of the actual cost of what is being agreed upon. This consideration can be in the form of love and affection, money (legal tender), goods, services, or any form that the law has a capacity to recognize as a legal way of executing this contract.
In addition to an agreement and a consideration, a contract must have contractual capacity. The parties must be recognized by the
References: Gitman, L. J., & Joehnk, M. D. (2008). Personal Financial Planning. New York: Cengage Learning Jennings, M. M. (2005). Business: Its legal, ethical and global environment. (p. 368). New York: Cengage Learning. Mahony, R., Scott G. Monson: Securities and Exchange Commission Opinion. California: DIANE Publishing Miller, R. L. (2009). Fundamental of business law: Excerpted Cases. (p. 92). New York: Cengage Learning. Miller, R. L. (2012). Fundamentals of business law: Summarized cases. (p. 133). New York: Cengage Learning. Shinder, D. L., Cross M. (2008). Scene of cybercrime. (p. 92). Chicago: Syngress Teall, J.L. (2012). Financial Trading and Investing. (p. 107). New Jersey: Academic Press