United States Securities Exchange Act of 1934 - (Chinese-English Parallel Text Edition)

Author: Zhang Lu
Publisher:
Publish Date: 2006-12-01
Features: The securities market also plays an important role in improving corporate governance. The public trading of securities market stocks can effectively reflect corporate information, making it possible to link the compensation of managers with stock prices. Linking the performance of stocks in the securities market to managers' compensation helps align the interests of managers with those of owners, thereby achieving the effect of improving corporate governance. Similarly, in developed securities markets, mergers and acquisitions are relatively easy to implement. As a result, poorly performing companies are more likely to be acquired, and the outcome of such acquisitions often involves the dismissal of the acquired company's management. Therefore, developed securities markets provide opportunities for improving corporate governance and punishing poor performers by facilitating mergers and acquisitions of poorly performing companies. The threat of mergers and acquisitions helps align the incentives of managers with those of owners to improve corporate operations and promote development.
To date, the U.S. federal securities law system is primarily composed of the following legislation: the Securities Act of 1933, the Securities Exchange Act of 1934, the Public Utility Holding Company Act of 1935, the Trust Indenture Act of 1939, the Investment Company Act of 1940, the Investment Advisers Act of 1940, the Securities Investor Protection Act of 1970, the Sarbanes-Oxley Act of 2002, and others. In addition, judicial precedents from U.S. federal courts and rules formulated by the Securities and Exchange Commission (SEC) also constitute important components of the U.S. federal securities law system. After years of development, U.S. securities law has become increasingly, exerting a significant influence on securities laws in many countries around the world and serving as a model for securities laws in numerous nations. Due to its effective reflection of the principles of the securities market and its adaptation to the healthy development of the securities market, U.S. securities law holds great reference and value for China.
The serious problems that have long existed in China's securities market stem, fundamentally, from a serious misunderstanding of the concepts and essence and tasks of the securities market and securities law. Furthermore, many Chinese companies have been listed in the U.S., and an increasing number are planning to do so. This necessitates an understanding of the U.S. securities law system. Currently, many Chinese companies have faced lawsuits shortly after listing in the U.S., affecting the image of Chinese enterprises in the U.S. securities market. Research and mastery of U.S. securities law require a high-quality translation text, which has long been lacking and is now urgently needed. Dr. Zhang Lu has long been engaged in research and practice in the field of securities law, possessing both a solid theoretical foundation and extensive practical experience. His rigorous and pragmatic approach, combined with his deep expertise in U.S. securities law, ensures the high quality of the translation.
Overall, the translation is quite precise and appropriately reflects the essence of U.S. securities law, which is truly commendable. Particularly noteworthy is that, at my suggestion, Dr. Zhang Lu also translated the Sarbanes-Oxley Act, making it possible for the law, including the widely 404 provisions, to be presented to the public in Chinese.