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