Anti-fraud Movements
Beyond laws that aim at prevention of fraud, there are also governmental and non-governmental organizations that aim to fight fraud. Between 1911 and 1933, 47 states adopted the so-called Blue Sky Laws status. These laws were enacted and enforced at the state level and regulated the offering and sale of securities to protect the public from fraud. Though the specific provisions of these laws varied among states, they all required the registration of all securities offerings and sales, as well as of every US stockbroker and brokerage firm. However, these Blue Sky laws were generally found to be ineffective. To increase public trust in the capital markets the President of the United States, Franklin D. Roosevelt, established the U.S. Securities and Exchange Commission (SEC). The main reason for the creation of the SEC was to regulate the stock market and prevent corporate abuses relating to the offering and sale of securities and corporate reporting. The SEC was given the power to license and regulate stock exchanges, the companies whose securities traded on them, and the brokers and dealers who conducted the trading.
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Famous quotes containing the word movements:
“His reversed body gracefully curved, his brown legs hoisted like a Tarentine sail, his joined ankles tacking, Van gripped with splayed hands the brow of gravity, and moved to and fro, veering and sidestepping, opening his mouth the wrong way, and blinking in the odd bilboquet fashion peculiar to eyelids in his abnormal position. Even more extraordinary than the variety and velocity of the movements he made in imitation of animal hind legs was the effortlessness of his stance.”
—Vladimir Nabokov (1899–1977)