Securities Act of 1934 Essay Example | Topics and Well Written Essays - 250 words

Securities Act of 1934 - Essay Example SEC offers a one-time registration of all the securities that wish to trade on the national stock exchange. The registration incorporates companies with 2000 shareholders or 500 unaccredited investors. Moreover, the company’s assets should amount to $10 million. Through regulating voting information calls for full exposure as an objective of the proxy solicitation. Here, representing the interests of shareholders and earlier filling is priority. The proxy statement should be detailed with the soliciting information. The 1934 Act antifraud provision entails regulating the propriety of sales within the marketplace. The specific sections of the antifraud act are Section 10(b) and Rule 10b-5. Here, it is stated that withholding of information interferes with the free market, and it is committing fraud through violating Section 10(b). Lastly, SEC objective calls for periodic filing under the 1934 Act. Companies have to file a quarter and annual financial reports known as 10-Q and 1 0-K respectively.