I only need case question 7 completed which is in the screenshot linked below outlined in blue.
Week Seven Assignments.html
7.1 Define a Security and list its elements.
7.2 Identify and list the legal requirements for companies that issue securities.
7.3 Identify and discuss the steps for trading securities and the regulations that apply to securities trading, to include the regulation of the stock market, the traders and the investors.
7.4 Define securities fraud and list its the elements.
7.5 List the provisions of the Sarbanes-Oxley Act and how it changed the way boards of directors for companies did business.
7.6 Define insider trading and identify and list the penalties for being found guilty of it.
This module aligns well with general objectives 1, 2, 3, 4, 5 and 7.
Important case for Chapter 18-United States v. Salman. This is a good discussion of what constitutes insider trading.
Todd v. Exxon, Corp. This case is another good discussion of the Sherman Act, but in this situation, employees sued several big oil companies saying they were conspiring to hold down salaries of managerial, professional and technical employees.
Read Chapter Eighteen
Chapter 18 Assignment
On page 453 of your text, do case question #7 – City of Philadelphia v. Fleming Co., 264 F3d 1245, 10th Cir. (2001)
In this case the court discusses in detail what a plaintiff in a securities fraud case has to show in order to prevail. What evidence is required in order to show that the defendant “deliberately” made misleading statements or omissions to potential stockholders.
Be sure to review the rubric for this assignment. Chapter 18 Rubric
Also, complete the Discussion Board, which is a discussion of your favorite topic or chapter in this course. See the discussion board instructions. Review the Discussion Rubric before you join the Discussion Board. Discussion Rubric
The Chapter 18 assignment has a due date. The due date for Chapter 18 is Aug 1st will not accept it late.
Be sure to upload your files into the appropriate Dropbox. You can access the dropboxes by going to Tasks in the top menu bar and selecting Dropboxes from the dropdown menu.
Meiners, Ringleb and Edwards
The Legal Environment of Business, 13th Edition
©2018 Cengage Learning®. May not be scanned, copied or duplicated
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May be debt (debt securities) of certain form
Note or bond that can be traded
May be equity (equity financing)
Most famous are common stocks traded on New York Stock
Exchange, NASDAQ, etc.
Securities provide capital for business operations
Securities represented by
Pieces of paper
More commonly now, just electronic records
Represent value in something real
Debt and Equity
When bonds are sold, there is an
issue of a certain amount
Bonds when traded are securities
Debt financing may also occur by
borrowing from large lenders
(e.g., insurance companies)
Instrument usually specifies:
Amount of debt
Length of period
Rate of interest charged
• Equity financing is raising funds
through sale of company stock
• Sale of company stock to
purchasers – (shareholders)
• Shareholders have claim to future
profits of company
• Company is not obligated to repay
• If openly traded, are securities
Origins of Securities Regulation
States began with blue sky laws to deter fraudulent securities
Most important Federal laws are:
Securities Act of 1933
Regulates initial public offerings of securities
Securities Exchange Act of 1934
Regulates trading in existing securities, disclosure
requirements, securities markets and professionals
Securities and Exchange Commission
Agency responsible for enforcement and administration of
federal securities laws
What Is A Security?
Merely calling something a security does not make it
Have higher regulatory controls for securities
Four basic elements (Howey Test):
Investment of money
In a common enterprise
With an expectation of profits
Generated by efforts of persons other than the investors
Securities Exempt from Regulation
Securities issued or guaranteed by government
Federal, state or local
Securities issued by banks
Securities issued by religious and charitable organizations
Offering Securities to Investors
1933 Act requires full disclosure of all material
information on security, issuers, and intended use of
money before sale to public.
Material information is relevant information an investor
would want to know:
Plan of operation (use of money raised)
Despite regulations, a lot of bogus securities are sold,
Latta case provides example.
Latta v. Rainey
From 2001 – 2004, Mobile Billboards of America (MBA) sold mobile
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