Federal Rules and Regulations that apply to Techno Products, Inc.

Essay by ka28277University, Bachelor'sA, July 2007

download word file, 18 pages 5.0

IntroductionUnder the federal rules and regulations, the Security Act of 1933 governs the initial issuance and registration of securities, as opposed to the Securities Exchange Act of 1934 which governs financial reporting, and the registration of people involved with the sale of securities. The enforcement authority given by Congress allows the SEC to bring civil enforcement actions against individuals or companies found to have committed accounting fraud, provided false information, or engaged in insider trading or other violations of the securities law. They also work with criminal law enforcement agencies to prosecute individuals and companies alike for severe offenses.

The New York Stock Exchanges provides an efficient method for buyers and sellers to trade shares of stock in companies registered for public trading. The exchange provides efficient price discovery via an auction environment designed to produce the fairest price for both parties. The federal security law under the Securities and Exchange Commission (SEC) is responsible for administering rules to regulate various stock exchanges, utility holding companies, investment trusts, and investment advisers.

The Sarbanes-Oxley Act was signed into law on July 30, 2002. Sarbanes-Oxley is considered the most significant change to federal securities laws in the United States. The Sarbanes-Oxley Act is designed to review dated legislative audit requirements to protect investors by improving the accuracy and reliability of corporate disclosures, covering issues such as establishing a public company accounting oversight board, corporate responsibility, auditor independence, and enhanced financial disclosure. Sarbanes-Oxley requires additional disclosure as well as criminal and civil penalties for securities violations and significantly longer jail sentences and larger fines for corporate executives who knowingly and willfully misstate financial statements.

In this research paper, the learning team B will prepare a summary of NYSE, SEC, and SOX requirements in Techno Products Inc. Additionally, the research paper will described and...