Business Law Week 8 Assignment



Business Law Week 8 Assignment

Question no 1

Discuss how administrative agencies like the Securities and Exchange Commission (SEC) or the Commodities Futures Trading Commission (CFTC) take action in order to be effective in preventing high-risk gambles in securities / banking, a foundation of the economy.

Risks are very common not just for the organizations but to the individuals as well, there is lot of risks that encounters in our daily lives. Moreover, proper management can eventually be effective in preventing from the risk and gambling issues. It is important in any organization to have a tool that guarantees the correct evaluation of risks, which are subjected to the processes and activities involved in the area information, and through procedures of control is to evaluate the performance of the computing environment Cash (McKenney, 2010). Information security is one of the most essential aspects of successful operation of every modern organization.

The SEC is responsible for enforcing the six major financial laws that regulate the financial industry, which are:

The Securities Act (1933)

This law has two main objectives:

Provide investors with the provision of financial information and any other significant information concerning financial products (stocks, bonds) making a public offering;

Prohibit concealment, distortion and other fraud in the sale of financial products.

The Securities Exchange Act (1934)

This law led to the creation of the SEC and gave him authority over the financial industry in terms of regulation and supervision. The New York Stock Exchange, the American Stock Exchange and the National Association of Securities Dealers, which operates the NASDAQ, are under the supervision of the SEC.

This law identifies and prohibits certain conduct on the market and provides the SEC with disciplinary powers over entities and persons associated with them. The Act also gives the SEC the right to require periodic reporting of information by companies making public offerings (Hoffman, 2002).

The Trust Indenture Act (1939)

This law applies to financial products like bonds, certificates and receivables available to the public. While these products may be covered by the Securities Act of 1933, they may not be open to the public unless a formal agreement between the bond issuer and the holder (the trust indenture) meets the requirements of the said Act.

The Investment Company Act (1940)

This law regulates the organization of companies, such as mutual funds, which invest in equities and that their actions are open to the public. This law requires particular disclosures on the bottom, its investment objectives, structure and operations, destination public investors.

The Investment Advisers Act (1940)

This law regulates the profession of investment advisers. Since the 1996 amendment, only advisors with management assets of over $ 25 million or those managing the assets of a listed investment company can be listed with the SEC.

Question no 2

Determine the elements of a valid contract, and discuss how consumers and banks each have a duty of good faith and fair dealing in the banking relationship.

The contract has its own unique structure, consisting of ...