Securities and Exchange Commission
Sola Oni and Kyle Ronquillo
When and Why the SEC Was Created
First Annual Report of the SEC
Actions taken by the SEC and its Impact
SEC Creation and Senior Staff
Franklin D. Roosevelt
"The danger of this centralization in a handful of huge corporations is not reduced or eliminated, as is sometimes urged, by the wide public distribution of their securities. The mere number of security-holders gives little clue to the size of their individual holdings or to their actual ability to have a voice in the management. In fact the concentration of stock ownership of corporations in the hands of a tiny minority of the population matches the concentration of corporate assets."
-Franklin D. Roosevelt, Message to Congress on Curbing Monopolies. April 29, 1938
(Roosevelt, "Franklin D. Roosevelt: Message to Congress on Curbing Monopolies.")
Joseph P. Kennedy
"The Commission will undoubtedly make new advances and arrive at fresh triumphs. But whatever it achieves, the men and women who have toiled for it during its infancy, who have nourished it and cherished it, will remember that it was Joe Kennedy’s strength and courage and Herculean labors which really put it over."
-David Saperstein
Letter from David Saperstein to Joseph P. Kennedy. September 24, 1935
(Durr, "431 Days: Joseph P. Kennedy and the Creation of the SEC (1934-35) (Introduction)")
Franklin D. Roosevelt
Reaction of American People and the Government
Securities Act of 1933
This was the first act created against security fraud, and it aimed to protect investors from the false statements presented to them by companies.This was necessary as many companies would accentuate the positives of the company while neglecting to mention the negatives.
Public corporations were eventually required to register their stocks sales and distribution and make regular financial disclosures (Sarkar, "Legal Information Institute")
Securities Exchange Act of 1934
This act deals with sales that take place after a security is initially offered by a company
It established a mandatory process of disclosure which forced companies to provide information to the public that could have an impact on serious investment decisions
This act also established a system of regulating exchanges, brokers, and over-the-counter markets, as well as monitoring the required financial disclosures (Sarkar, "Legal Information Institute")
The 1935 Public Utility Holding Company Act
This act was created in response to the corrupt actions of utility holding companies, and eliminated holding companies that were more than twice removed from the utilities whose stocks they held
It broke up large utility combinations into smaller companies and set up federal commission to regulate utility rates and financial practices
Prevented utility holding companies from giving money towards unregulated business practices from their regulated business activities and their customers. The act then required that all side businesses must be separated from regulated businesses ("Union of Concerned Scientists")
Works Cited
"AllGov - Departments." AllGov - Departments. Web. 14 Feb. 2016.
Biography.com Editors. "Franklin D. Roosevelt Biography." Bio.com. A&E Networks Television. Web. 14 Feb. 2016.
Biography.com Editors. "Joseph P. Kennedy Biography." Bio.com. A&E Networks Television. Web. 14 Feb. 2016.
Durr, Kenneth, and Adrian Kinnane. "Securities and Exchange Commission Historical Society." 431 Days: Joseph P. Kennedy and the Creation of the SEC (1934-35) (Introduction). Securities and Exchange Commission Historical Society. Web. 14 Feb. 2016.
History.com Staff. "Securities and Exchange Commission." History.com. A&E Television Networks, 2010. Web. 12 Feb. 2016.
"Hoover & the Depression: The Bonus Army." Hoover & the Depression: The Bonus Army. Authentichistory.com. Web. 14 Feb. 2016.
"How the SEC Protects Investors, Maintains Market Integrity." How the SEC Protects Investors, Maintains Market Integrity. U.S. Securities and Exchange Commission. Web. 15 Feb. 2016.
"Letter to the U.S. Securities and Exchange Commission." Letter to the U.S. Securities and Exchange Commission. Carbon Tracker Initiative. Web. 14 Feb. 2016.
"Public Utility Holding Company Act (PUHCA)." Union of Concerned Scientists. Web. 14 Feb. 2016.
Roosevelt, Franklin D. "Franklin D. Roosevelt: Message to Congress on Curbing Monopolies." Franklin D. Roosevelt: Message to Congress on Curbing Monopolies. The American Presidency Project. Web. 15 Feb. 2016.
Sarkar, Deepa. "Securities Act of 1933." LII / Legal Information Institute. Cornell University Law School. Web. 14 Feb. 2016.
Sarkar, Deepa. "Securities Exchange Act of 1934." LII / Legal Information Institute. Cornell University Law School. Web. 14 Feb. 2016.
"The Investor's Advocate: How the SEC Protects Investors, Maintains Market Integrity, and Facilitates Capital Formation." SEC.gov. Web. 14 Feb. 2016.
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"What Does the Securities and Exchange Commission Do- - TeacherTube." TeacherTube. Web. 14 Feb. 2016.