Question

Learn about the SEC This week's Discussion is centered on the Real-World Focus presented in CT 17.5. Public companies have to file their annual reports to the Securities and Exchange Commission. There are rules that companies are required to follow. Domestic issuers must submit annual reports on Form 10-K, quarterly reports on Form 10Q, and current reports on Form 8-K. Please review the Real-World Focus in your text and answer the following questions. • How many enforcement actions does the SEC take each year against securities law violators? What are the typical infractions? • After the Depression, Congress passed the Securities Acts of 1933 and 1934 to improve investor confidence in the markets. What two "common sense" notions are these laws based on? Who was the President of the United States at the time of the creation of the SEC? Who was the first SEC chairperson? Who is the current SEC chairperson?

Answer 1

How many enforcement actions does the SEC take each year against securities law violators? What are the typical violations? Answers: Each year the SEC brings between 400-500 civil enforcement actions against individuals and companies that break the securities laws. Typical infractions include insider trading, accounting fraud, and providing false or misleading information about securities and the companies that issue them. After the depression, Congress passed the Securities Acts of 1933 and 1934 to improve investor confidence in the markets. What two "common sense' notions are these laws based on? Answers: Those who sell and trade securities - brokers, dealers, and exchanges must treat investors Fairly and Honestly, Who was the President of the United States at the time of the creation of the SEC? Who was the first SEC chairperson? Who is the current SEC Chairman? Answers: President of the United States at the time of the creation of the SEC: Franklin D. Roosevelt First SEC chairperson: Joseph P. Kennedy Current SEC Chairman: Jay Clayton