Securities and Exchange Commission (SEC) Law on Shares in Learning Offering

Securities Law
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Securities Law
The securities exchange commission (SEC) was established after Congress's passage of the Securities Exchange Act of 1934 (Seaquist, 2012, Chapter 31). It came in the aftermath of the stock crash and subsequent economic depression of 1929 as one of the measures to prevent a repeat of the same. Its role is to protect investors and regulate the securities markets. In regulating the markets, SEC also has the mandate of monitoring and regulating business takeovers. It, therefore, places a lot of regulation and control over traders, brokers, and dealers to exercise a lot of business ethics and honesty when dealing with potential investors.
On the need for the offering to be registered by SEC, there is no real need for this registration by the offerings. It is worth noting that there are several public securities, such as a charitable, bank, and religious securities. Others include commercial paper, educational and fraternal institutions, and insurance policies. These securities are usually not part of those considered for registration; this is in line with the Securities Act of 1933, which exempts them (Seaquist, 2012, Chapter 31). It has been noted earlier that Private University is "a proprietary, for-profit institution." This implies that it falls under the category of securities by educational and fraternal entities, which have been considered exempt from registration by the SEC.
Additionally, the university does over three-quarters of its business operations from within the state because it is fixed in one place. The SEC has a clause that exempts ...