Admission Paper Example on Securities Exchange Commission
Securities Exchange Commissions an agency managed by the federal government that holds the mandates of ensuring the federal laws are implemented, and regulating the national stock and securities market. These are also the main motivating factors for the creation of this commission as it prevents the occurrence of securities abuse by the corporates. The securities exchange commission also has the mandate to regulate the players in the stock exchange trade and also to license the traders in the same industry.
In the United States, the securities exchange commission is tasked with the job of implementation of the seven laws. These laws are considered the drivers of the stock exchange market. The laws are; investment advisers act passed in 1930 that regulates the activities of all independent adviser in the stock exchange market, Securities Act passed in 1933, the act regulating securities exchange passed in 1934, Trust Indenture passed in 1939, Investment Company Act approved in 1940, Sarbanes–Oxley that was approved in 2002, and the act regulating the credit agencies and their procedures for reform passed in 2006.
The securities exchange commission as the authority given to it by congress to bring to book different corporate bodies, organizations, companies and individuals that are suspected of committing gross fraud in their dealing and trade. These bodies if found guilty are prosecuted by the law agencies that work hand in hand with the securities exchange commission so as to eliminate malpractice in the industry.
These responsibilities are achieved through cooperation of the securities exchange commission and the trading companies. Thus, the commission requires all the companies to provide their annual financial reports and also the quarterly financial reports. The commission also requires the submission of the narrative accounts by the company executives for further analysis and comparison with the previous years of operation. This ensures the commission as sufficient information to detect any anomalies.