The financial market is an area that can be very rewarding or downright frightening. Investors have their work cut out for them when trying to choose the right company to invest in. With previous accounting scandals related to Enron, investors have to be very careful when investing their money. This is where federal agencies such as the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) can help. The SEC and the CFTC try to protect investors from fraud and abusive trade practices. There are also self ?regulatory organizations such as the National Association of Securities Dealer (NASD) and the New York Stock Exchange (NYSE). The NASD and the NYSE are private-sector provider of financial regulatory services and strive to bring integrity to the market and confidence to the investors. The following paragraphs will look at the SEC and the NYSE, and explain the roles of these regulatory bodies in the financial markets for Nike, Inc.
English: The New York Stock Exchange on Wall Stree...
New York Stock Exchange on Wall Street in New York...
English: The New York Stock Exchangeand Oakley, Inc.
The SEC?s main objective is to protect the investor and maintain the integrity in the securities market. The SEC believes in a simple and straightforward concept: all investors should have access to certain basic facts about an investment before buying it. As a result, the SEC requires public companies to disclose financial and other information to the public. This process allows every individual the opportunity to understand a company before investing in it. For example, every financial information on Nike, Inc. and Oakley, Inc. is available for the public to view from income statements to statement of cash flows. The SEC is also responsible for other key participants in the securities world, including stock exchanges, broker-dealers, investment advisors, mutual funds, and public utility holding companies. Again, the SEC is concerned primarily with promoting disclosure of important...