Securities and Exchange Commission
The year that the Truth-in-Securities Act was enacted
1933
The year that the Securities and Exchange Commission was established
1934
Oligopoly
A state of limited competition, in which a market is shared by a small number of producers or sellers
Example of a power of the SEC
Ability to issue subpoenas to demand relevant documents and testimony, aiding their enforcement efforts
Groups of people for the SEC
Consumers, Most of Congress at the time, Progressives, *cough* FDR *cough*
Example of the impact of the SEC
Investigation against Martha Stewart for practicing insider trading through the SEC; led to her eventual conviction for obstruction of justice
Example of an argument against the SEC
Joseph Kennedy, a noted speculator, would turn it into another "tool for the rich"
Insider Trading
Practicing the illegal trading of a company's stock by people using confidential company information
Speculation
Practicing the making of high-risk investments with borrowed money in hopes of getting a big return
The function of the SEC
Practicing the protection against financial and investment fraud, maintaining of fair dealing, monitoring and regulation of insider trading, and promotion and enforcement of the public release of relevant financial information
Example of a reason for the SEC's implementation
Protection for investors from dangerous of illegal financial practices or fraud
A follow-up act to the Truth-in-Securities Act & the SEC
The Investment Company Act of 1940
Groups of people against the SEC
Wall Street, Small Government Advocates, Cynics
Joseph Kennedy
The first head of the SEC who was "coincidentally" a speculator
Richard Whitney
The onetime head of the New York Stock Exchange and the first large criminal bust under the SEC