Interpretation of the U.S. Securities Law

Author: Larry D. Soderquist
Publisher:
Publish Date: 2004-07-01
Features: "Although a smart lawyer can easily teach themselves certain areas of law through statutes, rules, and cases, federal securities law is not one of them. If you give a highly motivated and talented lawyer who has never been exposed to federal securities law the Securities Act of 1933 and its rules and cases and ask them to study it for a few weeks in isolation, they may know a lot about this field but still fail to grasp the essence. Securities law, particularly the Securities Act, is complex—it is like a puzzle: on the surface, it seems that many interpretations are possible, but in reality, only one is correct. The purpose of this book is to help solve this puzzle."
"Although a smart lawyer can easily teach themselves certain areas of law through statutes, rules, and cases, federal securities law is not one of them. If you give a highly motivated and talented lawyer who has never been exposed to federal securities law the Securities Act of 1933 and its rules and cases and ask them to study it for a few weeks in isolation, they may know a lot about this field but still fail to grasp the essence. Securities law, particularly the Securities Act, is complex—it is like a puzzle: on the surface, it seems that many interpretations are possible, but in reality, only one is correct. The purpose of this book is to help solve this puzzle."
This book first briefly introduces the origin of U.S. securities law. The problems caused by the lack of regulation led to the collapse of the U.S. securities market in 1929. These problems and the subsequent collapse were the main causes of the Great Depression and led to the paralysis of the U.S. economy in the 1930s. From this painful experience, the author realized that securities trading must be subject to substantial regulation. The author believes that there are three things that securities law must accomplish. First, when a company issues its securities and the company's securities are traded in the securities market, securities law must compel the company to provide full and fair disclosure. Second, securities law must ensure the fair operation of the securities market. Otherwise, investors will be deceived. Third, securities law must compel investors to primarily use their own funds, rather than borrowed funds, to purchase securities. Chinese readers who read this book will understand how U.S. securities law addresses these essential issues and maintains a fair, active, and stable securities market.