22.1 Securities Law Generally
Securities law covers the sale of, and other transactions involving, securities. A security (not to be confused with a security interest) is a negotiable instrument that represents some kind of value. Securities can be debt securities (such as banknotes or bonds) or equity securities (such as stocks and ownership interests in other types of business entities). Securities laws are generally enforced by the federal government, most notably by the US Securities and Exchange Commission (SEC) (though other government agencies, such as the federal Commodity Futures Trading Commission, regulate certain types of securities like futures).
22.2 Principal Statutes
Securities Act of 1933 (’33 Act). The ’33 Act was passed in the wake of the 1929 stock market crash. Its primary purpose is to assure the disclosure of all material information in public offerings for the sale of securities, and it sets forth in detail the nature of the disclosures required and the circumstances under which a public offering has occurred.
Securities Exchange Act of 1934 (’34 Act). The ’34 Act regulates the trade in already-issued securities. It sets out a system for registering and reporting the exchange of securities and is designed to mandate honest, equitable and consistent behavior in the market. The ’34 Act prohibits acts that would mislead investors or impair their ability to make a fully-informed assessment about the risks inherent to their investment.
Public Company Accounting Reform and Investor Protection Act of 2002 (Sarbanes-Oxley or SOX). Sarbanes-Oxley was enacted as a reaction to several accounting scandals that occurred in the early days of the 21st century. It set new, stringent standards for publicly-traded companies and their boards of directors, managers and accounting firms. Sarbanes-Oxley applies only to publicly-traded companies.
Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank). Dodd-Frank was enacted as a reaction to the so-called “Great Recession,” the global economic decline from 2007 to 2010. Dodd-Frank brought the most sweeping reforms to financial regulation in the United States since the Great Depression. The changes have affected nearly the entire financial services industry. In implementing Dodd-Frank, the SEC has proposed or adopted various rules regarding asset-backed securities, clearing and settlement, corporate governance and disclosure, credit ratings, derivatives, and oversight of investment advisers and broker-dealers.
Insider trading. One of the more controversial aspects of securities regulation is the concept of insider trading, i.e., buying or selling securities based on knowledge not available to the general public. Among other statutes, the Insider Trading Sanctions Act of 1984 and the Insider Trading and Securities Fraud Enforcement Act of 1988 set out strict guidelines for what constitutes insider information, what types of transactions are prohibited, and the penalties for engaging in them.
Other relevant federal statutes. Other federal securities laws include the Public Utility Holding Company Act of 1935 (regulating, among other things, a utility company’s ability to engage in non-utility business), the Trust Indenture Act of 1939 (supplementing the ’33 Act with respect to debt securities), the Investment Company Act and the Investment Advisers Act of 1940 (regulating, among other things, the activities of mutual funds and investment advisers), the Securities Investor Protection Act of 1970 (regulating stockbrokers and other dealers in securities), and the National Securities Markets Improvement Act of 1996 (amending securities laws to promote efficiency and provide more effective and less burdensome regulatory regimes between the federal government and the states).
State securities regulation (blue sky laws). In addition to the federal regulations, each state has its own body of laws regulating securities transactions within its borders. These state laws are sometimes called “blue sky laws.” Depending on the circumstance, a transaction may be covered by both federal and state laws.
22.3 Penalties for Securities Law Violations
It is critical for managers of a company to make themselves aware of which federal and state securities laws are applicable, and to secure effective legal counsel in determining how best to comply with the requirements imposed on them. The consequences of a failure to do so can be most dire. Penalties for violations of securities law, particularly willful violations, can be severe. Punishments vary from statute to statute, but can include both enormous fines and prison time. Under Sarbanes-Oxley, for instance, the knowing alteration or destruction of relevant records can be punished by up to 20 years in prison.
Sheria ya dhamana: Sheria ya dhamana inashughulikia uuzaji wa dhamana na shughuli nyingine zinazohusisha dhamana. Hifadhi (si kuchanganyikiwa na maslahi ya usalama) ni chombo cha kuuzwa ambacho kinawakilisha aina fulani ya thamani. Hifadhi za hifadhi zinaweza kuwa hifadhi za deni (kama vile noti za benki au dhamana) au hifadhi za hifadhi (kama vile hisa na maslahi ya umiliki katika aina nyingine za vyombo vya biashara). Sheria za dhamana kwa ujumla zinatekelezwa na serikali ya shirikisho, haswa na Tume ya Usalama na Soko la Marekani (SEC), ingawa mashirika mengine ya serikali, kama vile Tume ya Shirikisho ya Biashara ya Bidhaa ya Futures, inasimamia aina fulani za dhamana kama vile futures. Sheria ya Usalama ya 1933 (Statutem) Sheria ya 33 ilitolewa baada ya kuanguka kwa soko la hisa la 1929. Lengo lake kuu ni kuhakikisha kufichuliwa kwa habari zote muhimu katika matoleo ya umma kwa ajili ya uuzaji wa dhamana, na inaelezea kwa undani asili ya ufichuaji unaohitajika na hali ambazo toleo la umma limetokea. Sheria ya Uwekezaji ya Uwekezaji ya 1934 (STCW) Sheria ya <unk>34 inasimamia biashara ya dhamana zilizotolewa tayari. Sheria hiyo inaelezea mfumo wa usajili na kuripoti kubadilishana kwa dhamana na imeundwa kuamuru tabia ya uaminifu, usawa na thabiti katika soko. Sheria ya 34 inakataza vitendo ambavyo vinaweza kupotosha wawekezaji au kudhoofisha uwezo wao wa kufanya tathmini ya habari kamili juu ya hatari zinazohusiana na uwekezaji wao. Sheria ya Utaratibu wa Uhasibu wa Kampuni ya Umma na Ulinzi wa Wawekezaji ya 2002 (Sarbanes-Oxley) Sarbanes-Oxley ilitolewa kama athari kwa kashfa kadhaa za uhasibu zilizotokea katika siku za mapema za karne ya 21. Iliweka viwango vipya, vikali kwa makampuni ya biashara ya umma na bodi zao za wakurugenzi, wasimamizi na makampuni ya uhasibu. Sarbanes-Oxley inatumika tu kwa makampuni ya biashara ya umma. Sheria ya Dodd-Frank ya Utaratibu wa Wall Street na Ulinzi wa Watumiaji ya 2010 (Dodg Frank) Dodd-Frank ilitolewa kama athari kwa kile kinachoitwa "Mashaka Kubwa", kupungua kwa uchumi wa ulimwengu kutoka 2007 hadi 2010. Dodd-Frank alileta mageuzi makubwa zaidi kwa udhibiti wa kifedha nchini Marekani tangu Mshuko Mkubwa wa Kiuchumi. Mabadiliko hayo yameathiri karibu sekta nzima ya huduma za kifedha. Katika kutekeleza Dodd-Frank, SEC imependekeza au kupitisha sheria mbalimbali kuhusu dhamana za dhamana, usafishaji na uhamisho, utawala wa ushirika na ufunuo, viwango vya mkopo, derivatives, na usimamizi wa washauri wa uwekezaji na wafanyabiashara wa broker. Biashara ya ndani. Moja ya mambo ya utata zaidi ya udhibiti wa dhamana ni dhana ya biashara ya ndani, yaani, kununua au kuuza dhamana kulingana na maarifa ambayo hayapatikana kwa umma kwa ujumla. Sheria ya Usalama wa Usalama wa Usalama wa Usalama wa Usalama wa Usalama wa Usalama wa Usalama wa Usalama wa Usalama wa Usalama wa Usalama wa Usalama wa Usalama wa Usalama wa Usalama wa Usalama wa Usalama wa Usalama wa Usalama wa Usalama wa Usalama wa Usalama wa Usalama wa Usalama wa Usalama wa Usalama wa Usalama wa Usalama wa Usalama wa Usalama wa Usalama wa Usalama wa Usalama wa Usalama wa Usalama. Sheria nyingine zinazohusiana za shirikisho. Sheria nyingine za dhamana ni pamoja na Sheria ya Kampuni ya Umma ya Umma ya 1935 (kuongoza, kati ya mambo mengine, uwezo wa kampuni ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma ya huduma. Sheria ya dhamana ya serikali (sheria za anga la bluu). Kwa kuongezea kanuni za shirikisho, kila jimbo lina sheria zake za kisheria zinazosimamia shughuli za dhamana ndani ya mipaka yake. Sheria hizi za serikali wakati mwingine huitwa "sheria za anga la bluu". Kulingana na hali, shughuli inaweza kufunikwa na sheria za shirikisho na za serikali. 22 (3) Adhabu kwa Ukiukaji wa Sheria ya Hisa: Ni muhimu kwa wasimamizi wa kampuni kujijulisha ni sheria gani za dhamana za shirikisho na za jimbo zinazotumika, na kupata ushauri mzuri wa kisheria katika kuamua jinsi bora ya kufuata mahitaji yaliyowekwa juu yao. Matokeo ya kushindwa kufanya hivyo yaweza kuwa mabaya sana. Adhabu kwa ajili ya ukiukaji wa sheria ya dhamana, hasa ukiukaji makusudi, inaweza kuwa kali. Adhabu hutofautiana kutoka sheria moja hadi nyingine, lakini zaweza kutia ndani faini kubwa na kifungo cha gerezani. Sheria ya Sarbanes-Oxley ya mwaka wa 2009 ilisema kwamba mtu anayebadilisha au kuharibu rekodi za umma anaweza kufungwa jela kwa miaka 20.