Corporate Governance and Federal Securities Laws - Explained

The video discusses the responsibilities of corporate officers in reporting financial matters to the public, particularly through the issuance of securities and compliance with the Securities Act of 1933 and the Securities Exchange Act of 1934. These acts regulate the issuance and trading of securities, requiring disclosures and prohibiting insider trading. The video also highlights the impact of these laws on corporate governance and the role of state securities laws in reinforcing federal regulations.

What is the primary focus of the Securities Act of 1933?

• Regulating the trading of existing securities

• Overseeing the dissolution of corporations

• Controlling the new issuance of securities and required disclosures

• Managing corporate mergers and acquisitions

Which act requires companies with publicly traded shares to continue public reporting?

• Securities Act of 1933

• Securities Exchange Act of 1934

• Sarbanes-Oxley Act

• Dodd-Frank Act

What is prohibited under the Securities Exchange Act of 1934 regarding internal information?

• Using internal information for corporate decision-making

• Sharing internal information with competitors

• Disclosing internal information to the public

• Using internal information for personal gain in trading

How do state securities laws generally relate to federal securities laws?

• They always contradict federal laws

• They are completely independent of federal laws

• They reinforce and sometimes add additional requirements

• They only apply to private companies

What is a significant impact of securities laws on corporate governance?

• They simplify corporate tax obligations

• They enhance disclosure requirements and public accountability

• They eliminate the need for financial audits

• They reduce the need for corporate transparency