...What are three primary roles of the SEC? How does the Sarbanes Oxley Act augment the SEC's role in managing financial governance? Do you think that businesses are more ethical after the passing of the Sarbanes Oxley Act? What examples are there to support you answer? “The mission of the U.S. Securities and Exchange Commission is to protect investors, maintain fair, orderly and efficient markets and facilitate capital formation (Commission, 2013).” According to the web site, the SEC requires public companies to disclose meaningful financial and other information to the public. This allows investors to be educated and judge for themselves whether or not to purchase, sell or keep a particular security. The SEC also oversees participants in the securities world, including securities exchanges, securities brokers and dealers, investment advisors, and mutual funds. This helps them to maintain fair dealing and protect against fraud. It has an enforcement arm which brings civil enforcement actions against individuals and companies for the violation of the securities laws. This would include insider trading, accounting fraud, providing false or misleading information, etc. The Sarbanes Oxley Act augments the SEC by mandating reform to “enhance corporate responsibility, enhance financial disclosures and combat corporate and accounting fraud (Commission, 2013),” and it created the Public Company Accounting Oversight Board to oversee the activities of the auditing profession...
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...An Analysis On The Role of Bangladesh Securities and Exchange Commission Course Name : Financial Institution and Market Course Code: Fin-335 , Sec: 1 Prepared for Prof. Tanvir Ahmed Chowdhury Chairman, Department of Business Administration East West University Prepared by Holistic Heroes Submission Date: 25th March, 2014 Group Profile Department Of Business Administration Letter of Transmittal 25th March 2014 Prof. Tanvir Ahmed Chowdhury Chairman Department of Business Administration East West University Dear Sir, It gives us immense pleasure to present our term paper on the topic “ An Analysis on Bangladesh Securities and Exchange Commission, for the course Financial Institution and Market (FIN_335). By doing this paper we have learned a lot practical issues regarding BSEC , Capital Market, Stock Market, Bond Market etc and we think that will help us in our near future. We would like to thank you for your valuable guidance in every problem we had the precious time that you give us. We will be available for any further clarification required and requesting to accept our term paper. Thank you Sincerely All the Members of Holistic Heroes Syed Md. Fakruuddin Nahid Hasan Sayma Sultana Al Mumtahina Shuovy Asma Sultana Nusrat Sharmin Eva Table of content | Page no | Introduction | 6 | 1.0.0 Bangladesh Securities and Exchanges Commission | 7 | 1.2.0 Function of BSEC | 9 | 2.0.0 Capital...
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... Strayer University LEG 100 Business Law I Professor Thomas A. Noto May 4, 2014 Merrill Lynch Introduction The Securities and Exchange Commission is a United States Federal Government Agency tasked with protecting investors by setting standards for disclosure of financial information, as well as enforcing securities laws and regulations of businesses that trade on the stock market. After the stock market crash of 1929, the Securities and Exchange Commission was created and given broad powers to regulate the offer and sale of securities, the brokerage industry, and the securities exchanges. This discussion will explore how businesses similar to Merrill Lynch are policed by the Securities and Exchange Commission’s duty of ensuring that businesses are following federal law and regulations. According to Merrill Lynch, there vision is to be the preeminent financial management and advisor company in the world with a drive that’s rooted in intelligence, principles and optimism. Although, Merrill Lynch claimed to strive to be the best at financial management, according to the Securities and Exchange Commission “they failed to inform investors that hedge fund firm Magnetar Capital Limited Liability Corporation had a third-party role and exercised significant influence over the selection of collateral for the collateralized debt obligations” (2013). This discuss will first look into the validity of contract and...
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...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. Securities and Exchange Commission ha s the role of looking after United States investors against possible loss of profits. This is by keeping a reasonable and organized practice that promotes resources markets. The commission necessitates businesses to reveal important information regarding securities that they put up for sale in order for investors to make well-versed decisions. Securities and Exchange Commission forbids purchases of stock without enough finances to pay for them. The commission controls registration and supervision of the securities markets and agents. The commission makes up rules and regulations for solicitation of alternatives. It also provides advice to courts in economic failure matters (Chatain, 2009). Proper management is the only way that can assist in avoiding threats and gambling matters. All organizations need to posses tools that will help in assessment of threats posed because of activities that take place in that organization. In order for an organization to become successful, activities about information on security issues need to be clear. Securities and Exchange Commission has the role of enforcing major economic rules that control the economic industry. They include, the securities act which aims at achieving...
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...1. ORIGIN OF THE REPORT This assignment is originated as the course requirement of FIN 335, which is termed to be a major course for the B.B.A program. As this assignment is based on Security Exchange Commission of Bangladesh, so we have to work with limited time. We were assigned the assignment on “Security Exchange Commission” around 30 days ago, and we went around looking for its source of existence and also searched the internet to get enough updated knowledge. 1. OBJECTIVE OF THE STUDY ➢ To present an overview of Security Exchange Commission. ➢ The Function of Security Exchange Commission. ➢ The objective of this report is to make readers know about Security Exchange Commission of Bangladesh. 1.2SCOPES AND METHODOLOGY OF THE REPORT SCOPE: After being assigned the assignment, we found that the scope of the report was confined to various related websites. The report is solely based on terms and concepts related to Security Exchange Commission. METHODS: This assignment has been prepared on the basis of experience gathered during the period of FIN 335 course. For preparing this assignment, we have also got information from various websites and Security Exchange office at Motijheel ‘ Jibon Bima Bhaban ‘which may provide successful results considering this report. 1.3 LIMITATIONS ✓ Some websites had no direct reference. ✓ Unable to collect enough information from due to their official restrictions. ...
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...Mode View Mode BookSlideshowScroll Readcast Add a Comment Embed & Share Reading should be social! Post a message on your social networks to let others know what you're reading. Select the sites below and start sharing. Readcast this DocumentTransparent Login to Add a Comment Share & Embed Add to Collections Download this Document for Free Auto-hide: on Quantcast 1. ORIGIN OF THE REPORT This assignment is originated as the course requirement of FIN 335, which is termed to be a major course for the B.B.A program. As this assignment is based on Security Exchange Commission of Bangladesh, so we have to work with limited time. We were assigned the assignment on “Security Exchange Commission” around 30 days ago, and we went around looking for its source of existence and also searched the internet to get enough updated knowledge. 1.1 OBJECTIVE OF THE STUDY To present an overview of Security Exchange Commission. The Function...
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...A Term Paper On “The Role of Capital Market on The Economic Development of Bangladesh” GOVT. SUHRAWARDY COLLEGE, PIROJPUR Department of Accounting Term Paper On “The Role of Capital Market on The Economic Development of Bangladesh” Submitted To: Md. Faruk Hosain Assistant Professor Department of Accounting Govt. Suhrawardy College, Pirojpur Submitted By: Alamgir Hossain Roll No- 9792874 Reg. No-1727384 Session-2010-2011 BBA (Hons) 4th Year Department of Accounting Govt. Suhrawardy College, Pirojpur Date of Submission: February 12, 2014 Letter of Transmittal Date : Md. Faruk Hosain Assistant Professor Govt. Suhrawardy College, Pirojpur Subject: Submission of Term Paper on “The role of capital market on the economic development of Bangladesh”. Sir, As a part of BBA program a term paper is enclosed herewith. The report was prepared on “The role of capital market on the economic development of Bangladesh.” In the course of preparation the report, I tried with the best of my capacity to accommodate as much information and relevant issues as possible and tried to follow the instructions as you have suggested. In the time of preparation the report, relevant documents, data, information were studied and practical knowledge had been gathered. I tried my best to make this report as much informative as possible. I sincerely believe that it will satisfy your requirements. I however sincerely believe that this report will serve the purpose of my term paper...
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...form of business also increases the need for objective verification of data and creates a need for disclosure of more and better information to owners and potential investors. Furthermore, the increase in value, size and activity of capital exchange in security market also increases the opening of taking advantage in lax conditions and to profit by misrepresentation and manipulation. Hence, the main reason for establishing the securities legislation was because large security market requires operating procedures that would protect investors from fraud and guarantee an adequate supply of capital for economic growth. Background of the SEC The Securities and Exchange Commission (“SEC”) is one of several public and private sector rule-making organizations that have an effect on financial reporting for businesses. It plays a crucial role in the development and improvement of financial reporting theory and practice. Frequently the work, accomplishments and contributions of the SEC do not receive the attention given to other group, such as the Financial Accounting Standards Board, the Government Accounting Standards Board, or the American Institute of Certified Public Accountants. A common mistaken belief is that securities legislation only begun...
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...thus money will be duly safeguarded and returned to them when they need it, The banks, in turn, lend their depositors money to borrowers … based on a trust that he borrowers will return the money ….”.[1] In order to protect the public interest and the business trust as depicted in the above paragraph, there needs to be legal protection in place. This is where state regulation comes into play in the marker arena. Two ways of regulating market are: legal regulation and corporate governance regime (which may be based on both private initiates and public regulations). Securities and Exchange Commission Laws: Securities and Exchange Ordinance 1969;[2] and the Securities and Exchange Commission Act 1993. Bangladesh’s securities market dates back to the Pre-Independence era. It has, however, yet to make any remarkable progress. Lack of proper regulatory role of the Securities and Exchange Commission, there are some...
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...Ethics and Compliance Leslie Hope, Quo-vades Simonton, Teresa Duncan, Kizzy Richardson FIN/370 August 2, 2012 Professor Franklin Olivieri Ethics and Compliance This paper contains analyzed data of the organization Lowe’s Home Improvement Stores. Lowe’s is a home improvement store that provides its customers with the supplies needed for any improvements around the home. The discussion hereafter will assess the role of ethics in the financial department and describe the procedures the company has to encourage ethical behavior. Next, explain the role financial markets in the United States. Followed by how Lowe’s complies with Securities and Exchange Commission (SEC) regulations. Lastly, provide an evaluation of the company’s financial performance last two annual periods, followed by the calculations of ratios for each year. The ratios include current, debt, return on equity, and days receivable along with an explanation for trends. The code of business conduct and ethics at Lowe’s improvement stores starts with the board of directors down to the newest employee. Everyone associated with or represented by Lowe’s is required to read and adhere by the code of conduct. Lowe’s values its reputation as a leader when complying with governmental regulations involving ethics. Lowe’s applies ethics in its financial dealings by requiring, under Section B of the code of conduct. That “employees and members of their immediate families should not have any financial interest, direct...
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...History and Evolution of the Securities and Exchange Commission The Securities and Exchange Commission was created at the conclusion of the Senate Banking and Currency Committee’s 1932–1934 investigation of stock exchange practices, usually called the Pecora Hearings, in recognition of the decisive role played by the committee’s counsel, Ferdinand Pecora.(Macey, 2010) Between September 1, 1929, and July 1, 1932, the value of all stocks listed on the New York Stock Exchange shrank from a total of nearly $90 billion to just under $16 billion, a loss of over 80 percent.(Macey, 2010) In a comparable period, bonds listed on the New York Stock Exchange declined from a value of $49 billion to $31 billion.(Macey, 2010) These figures, staggering as they were, fully gauge the extent of the 1929–1932 stock market crash.(Wiesen, 1979) During the post-World War I decade, approximately $50 billion of new securities were sold in the United States approximately half, or $25 billion, would prove near or totally worthless.(Wiesen, 1979) Leading securities, including General Electric, Sears, Roebuck, and U.S. Steel common stock, would lose over 90 percent of their value between selected dates in 1929 and 1932.(Zimmer, 2009) Formally, the purpose of Pecora’s stock exchange hearings was to determine why these staggering decreases in security values had occurred and to propose legislation to prevent another stock market crash. (Wiesen, 1979) The Pecora hearings also had an obvious...
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...The United States securities laws and corporate governance system requires that a board of directors supervise the management of each public corporation. The Securities Exchange Act of 1934 created the US Securities and Exchange Commission (SEC). The primary mission of the US Securities and Exchange Commission is to protect investors and maintain the integrity of securities markets. The SEC oversees corporate disclosure of information to the investing public. Public companies in the United States with more than $10 million in assets and whose securities are held by more than 500 owners are required to file annual and quarterly statements (Forms 10K and 10Q) with the SEC. These forms are supposed to disclose information about such public companies financial condition and business practices. This disclosure is expected to help investors make informed investment decisions. To restore the investing public’s faith in capital markets, Congress passed the Securities Act of 1933 and Securities Exchange Act of 1934. These laws were designed to restore investor confidence in U.S. capital markets by providing for more structure and oversight. American Journal of Business Fall 2002: Vol. 17 No. 2 The Social Impact of Business Failure: Enron Uma V. Sridharan, Lander University Lori Dickes, Lander University W. Royce Caines, Lander University According to Merriam Webster Online, law is "a binding custom or practice of a community; a rule of conduct or action prescribed or formally...
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...Business Week 1 100% Workshop 1 – Discussion Questions This paper will explore the discussion questions for the first of five workshops of Finance for Business. The three topics include: 1) The capital market, how the primary market differs from the secondary market, and in the student’s opinion are these markets efficient, and why. 2) The three primary roles of the U.S. Securities and Exchange Commission, how the Sarbanes-Oxley Act of 2002 augments the SEC’s role in managing financial governance, and if the writer thinks the passage of this act had the outcome of businesses becoming more ethical. Examples will be used to support this thinking.3) Ratios which measure a corporation’s liquidity, some problems associated with using these ratios, and how the DuPont analysis would overcome these problems. The DQ’s will be stated, and then the Discussion Answers will be explored below. DQ 1 – The Capital Market What is the capital market? How is the primary market different from the secondary market? In your opinion, are these markets efficient? Why? Discussion Answer 1 The capital market is “Any market in which securities are traded. Capital markets include the stock and bond markets.” (Farlex Financial Dictionary 2009) “Traditionally, this has referred to the market for trading long-term debt instruments (those that mature in more than one year). That is, the market where capital is raised. More recently, capital markets is used in a more general context to refer to the market...
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...to be one of the emerging markets in the context of the global financial system. The market has immense potentials for country’s industrialization, development of infrastructure in particular and economic growth in general. The government and the Securities and Exchange Commission (SEC) have undertaken a good number of initiatives to meet Bangladesh's development financing requirements with a particular focus on developing long term infrastructure financing and strengthening financial stability through promotion of capital market. In this regard formulation of a Master Plan is of crucial importance. Stock markets or Stock exchanges play an important role in the modern capitalized economy by providing the strength to nation's economic infrastructure. Now the stock market is one of the most important sources for companies to raise capital. Stock market allows businesses to raise additional capital for expansion by transferring the ownership of the company. It provides individuals the opportunity to invest in corporations. The size of the world stock market was estimated at about $36.6 trillion at the beginning of October 2008. In Bangladesh, there are two stock exchanges, the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE), DSE was setup on April 28, 1954 that started formal trading in 1956. In 1995, CSE was setup. However, in its fifty-eight year’s history the stock market of Bangladesh crashed two times, first in 1996 and then in 2011. At first, the market...
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...Introduction The stock market is the most active financial market in the U.S., which includes more than 5000 securities companies, trade associations, the stock exchange, investment banks and other institutions. The stock market can be divided into two level. The primary market including corporation, government agency, and investment bank sells securities to initial buyers, in other words called securities issue. The secondary market resell securities which have been previously issued in primary market. Secondary market can be organized in two ways. One ways is to organize exchanges, “where buyers and sellers of securities (or their agents or brokers) meet in one central location to conduct trades.”(Mishkin Eakins) The other way is to have an over-the-counter (OTC) market. The participants in OTC market trade through telecommunications networks such as telephone, email, and electronic system without a regular location. One of the importance network is the National Association of Securities Dealers Automated Quotation System (NASDAQ). Beyond those, Electronic Communications Networks (ECNs) have been challenging both the organized exchanges and NASDAQ for years. ECNs is a large quantity of stock trading electronic network that connect brokerages and traders so that they can trade directly without intermediaries. There are tens of billions of dollars of stock trading in the market every day. The management of the stock market of U.S. government is to regulate the issue and trading...
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