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Simple English definitions for legal terms

Securities Exchange Act of 1934

Read a random definition: reconventional demand

A quick definition of Securities Exchange Act of 1934:

The Securities Exchange Act of 1934 is a law that regulates the buying and selling of stocks in the secondary market. It requires companies to disclose important information to investors so they can make informed decisions about buying or selling stocks. The law also establishes the Securities and Exchange Commission (SEC), which enforces the rules and regulations of the Act. The SEC oversees self-regulatory organizations (SROs) and can bring civil or criminal actions against those who violate the law, including those who engage in fraud or insider trading.

A more thorough explanation:

The Securities and Exchange Act of 1934, also known as the Exchange Act, is a federal law that regulates the trading of securities in the secondary market. This law primarily governs transactions between parties that are not the original issuer, such as trades made by retail investors through brokerage companies.

To protect investors, the Exchange Act requires companies to disclose information that investors would find pertinent to making investment decisions. This mandatory disclosure process is designed to ensure that companies provide accurate and complete information to investors. The Act also regulates the exchanges on which securities are sold.

Companies with registered publicly held securities and companies of a certain size are called "reporting companies" and must make periodic disclosures by filing annual reports (Form 10-K) and quarterly reports (Form 10-Q). Reporting companies must also promptly disclose certain important events (Form 8-K). These reports include information about the company's officers and directors, the company's line of business, audited financial statements, and the management discussion and analysis section.

The Exchange Act requires disclosure of important information by anyone seeking to acquire more than 5 percent of a company's securities by direct purchase or tender offer. Such an offer often is extended in an effort to gain control of the company. If a party makes a tender offer, the Williams Act governs. The Williams Act requires the tender offeror to file disclosure documents with the SEC that disclose its future plans relating to its holdings in the company. This information allows investors to decide whether to sell or not.

The Securities and Exchange Commission (SEC) is the federal agency responsible for enforcing securities laws. The SEC ensures that companies meet the Exchange Act's disclosure requirements and registers and establishes rules regulating the conduct of market participants, stock exchanges, and self-regulatory organizations (SROs). The SEC can sanction, fine, or otherwise discipline market participants who violate federal securities laws.

The Exchange Act prohibits fraud and establishes severe penalties for those who defraud investors, as well as those who engage in some trading practices that take advantage of information most investors do not have (such as insider trading). The SEC can bring a civil enforcement action or criminal action for violations. Investors can also sue market participants who have defrauded them.

Section 10(b) is the primary anti-fraud statutory provision. The SEC primarily enforces this anti-fraud provision under Rule 10b-5, which prohibits the use of any "device, scheme, or artifice to defraud." Rule 10b-5 also imposes liability for any misstatement or omission of a material fact, or one that investors would think was important to their decision to buy or sell a security. Courts have held that there is a private right of action to sue under 10b-5.

Section 9 allows investors to sue for trading activities and patterns of trading conduct that mislead investors about the true value of a security, inducing them to trade. Claims under Section 9 are difficult to prove, since investors must show that the price was actually affected by the manipulation, and that the defendant acted willfully.

Section 20 provides for joint and several liability for people who control or abet violators of the Exchange Act, increasing the chance that an investor will be able to collect any damages that are awarded.

Securities dispute resolution: Selecting arbitrators | Securities fraud

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m10
20:42
Get the ones that are dressed up then!
@JumpySubsequentDolphin: LITERALLY I also just applied to work at garage cuz 50% EMPLOYEE DISCOUNT
m10
20:43
Or legacy collection v1
JumpySubsequentDolphin
20:43
@SplitterusClitterus: GARAGE JEANS FIT ME SO WEIRDLY WHICH SUCKS BC THEYRE SO CUTE
m10
20:43
The cool thing about V2 was it was an infinitely generating collection so they would have never sold out but they ended it early cus of the bear market.
@JumpySubsequentDolphin: NAURRR i need to try them on to see. ive never owned anything from them exceot maybe a tank in middle school?? but ive been a longtime lurker/windowshopper/fan
JumpySubsequentDolphin
20:45
SPLITTY if their jeans fit on my thighs they’re too big on my waist!!! it’s so frustrating
NOOO THEIR WHITE GIRL JEANS actually idk why im surprised
THEYRE**** THAT WAS AUTOCORREXT I SWEAR
babycat
20:46
@m10: infinitely generating means it comes up with new pictures? or new copies of the same pictures?
JumpySubsequentDolphin
20:46
if you’re the slightest bit curvy they are so obnoxious. me and my Abercrombie curve love’s are good together
SHUT UP I LOVE ABERCROMBIE JEANS
m10
20:47
Did y'all see this from ararara last night? https://studicata.com/case-briefs/all/
THOSE FIT SOO GOOD. i desperately need new jeans tho i ahvent gone shopping in millennia so a discount would come in clutch
JumpySubsequentDolphin
20:48
I got these jeans from re/done on a crazy sale and I love them BYT RHEY HAVE FIVE BUTTONS
JumpySubsequentDolphin
20:48
I DIDNT REALIZE WHEJ I BOUGHT THEM BC THEYRE HIDDEN. LIKE INSTEAD OF A ZIPPER THEYREBALL BUTTONS
JumpySubsequentDolphin
20:48
what if I have to pee.
THATS SO FUNNY
i cant i would go crazy
JumpySubsequentDolphin
20:50
i need to know who decided to do that.
JumpySubsequentDolphin
20:50
omg im on a plane weeeee
the devil
youre on a plane??? LSD made the mile high club??
20:50
yo splitterus are you in school already
20:50
it says ur c/o 2027
JumpySubsequentDolphin
20:51
@SplitterusClitterus: HAHAH yes
ur user is hilarioussss and no i just graduated this may and am now applying ---also im out of messages so ill take a lil
20:52
roger dat. see u in heck
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