1) What is the purpose of the SEC and FINRA?
- SEC: Keeps markets fair and honest by regulating companies and enforcing rules so investors have reliable information.
- FINRA: Regulates brokers and trading firms to protect investors and ensure trustworthy buying and selling of securities.
2) Why were the disclosure rules in the 1934 Act important?
- They require companies to share important financial information, helping investors make informed decisions.
- They reduce guesswork and fraud, promoting trust in the stock market.