An analysis of the topic of the united states securities and exchange commission arthur levitt

As a boy he attended Brant Lake Camp, a summer camp for boys in the Adirondacks. He first worked as a drama critic for The Berkshire Eagleand after the Air Forcehe was with Time-Life for five years before selling cattle and ranches as tax shelters. This experience with retail customers was a source of his interest in the small investor. He left the Commission on February 9,and was succeeded by Harvey Pitt.

An analysis of the topic of the united states securities and exchange commission arthur levitt

T he Securities Exchange Act of P. The act requires publicly held companies to make periodic public disclosures and disclosures in connection with proxy solicitations.

The act also mandates certain disclosures in connection with tender offers for the shares of publicly held companies. Finally, the act regulates trading by certain company insiders and broadly prohibits all fraud in connection with the sale of securities.

With respect to stock exchanges including the National Association of Securities Dealers, which operates the NASDAQ market, or the New York Stock Exchange, the act requires registration and adherence to certain principles of self-regulation to ensure that exchanges operate transparently and fairly.

Every securities broker and every securities dealer must be a member of a so-called self-regulatory organization. If either a securities firm or an individual affiliated with a securities firm violates the rules or regulations of the exchange, or the federal securities laws, or just and equitable principles of trade, the law permits the government to impose sanctions.

These sanctions can range from fines to censures to permanent barring from the securities industry. The act also includes civil and criminal penalties against those who violate its provisions.


The act therefore requires the use of an instrumentality of interstate communication or transportation before it applies. The courts have held that the use of mails or a telephone suffices to meet this requirement, even if the use is completely intrastate.

The Securities Act of was the first piece of President Roosevelt's New Dealand Congress enacted it during the first one hundred days of his administration.

Nevertheless, President Roosevelt made it clear that more securities regulation was needed, specifically legislation "relating to better supervision of the purchase and sale of all [securities] dealt with on exchanges.

The New Deal represented the first massive federal regulation of the economy.

Securities Exchange Act of 1934

The regulation of securities was a natural starting place for the New Deal reforms, as the market crash of seemed to have triggered the deep economic malaise that became the Great Depression.

Roosevelt sought to "bring back public confidence" in the securities markets and was convinced that truthful and full disclosure was essential to this goal. Congress joined in this conclusion, finding that full disclosure would give investors pause before falling prey to panic selling.

An analysis of the topic of the united states securities and exchange commission arthur levitt

Regulating the exchanges and publicly held companies is how lawmakers decided to achieve full disclosure, not just when a company first distributed securities, but on an ongoing basis. Congress was convinced that unregulated exchanges meant cycles of booms and terrible depressions when a company is a public traded company.

The Great Depression was all the convincing most needed. Nevertheless, the financial community opposed the act, preferring a more laissez-faire approach to preserve the status quo.

One opponent testified to Congress that the act was a conspiracy to take the nation "down the road from democracy to communism. Business interests feared the act would lead to government supervision of much of the business sector, and stock exchanges fought hard to maintain their autonomy.

Despite this opposition, the Securities Exchange Act passed both houses of Congress with overwhelming support and became law on June 6, A large part of this perception rested upon the effectiveness of the Securities Exchange Act of The act completed the work that Congress started with the Securities Act ofby insuring traders had the ability to make intelligent investment decisions through full and truthful disclosure.

The Act mandated disclosures when companies distributed securities, and the Act mandated disclosures when a company publicly traded its securities.

An analysis of the topic of the united states securities and exchange commission arthur levitt

Initially the courts were very receptive to the remedial and investor protection goals of the act. Borakthe Supreme Court held that private investors could obtain remedies under the act's proxy disclosure rules. Capital Gains Researchthe Supreme Court decided that the terms fraud and deceit, as used in the act with respect to the regulation of securities professionals, must be construed broadly to reach all unjust and unfair practices used by brokers to abuse the trust of their clients.

More recently, the Supreme Court held that trading on nonpublic inside information could amount to securities fraud even when the investor did not obtain the information from an officer or director of the issuer of the traded securities.

This is known as the "misappropriation theory" of insider tradingadopted in United States v. Still, as the decades passed and memories of the Great Depression faded, courts appeared to have become far more skeptical of the act. Gilbertsonthe Supreme Court greatly restricted the time period for bringing securities fraud claims before they were barred by the statute of limitations.Arthur Levitt, who served during the Bill Clinton and George W.

Bush administrations, pointed to global economic imbalances as the reason for the persistence of alternative currency. ETHER Live ETHERLive delivers real-time price and volume data across 16+ exchanges to users in a clear and easy-to-understand package.

Feb 19,  · ARTHUR LEVITT was the 25th and longest serving Chairman of the United States Securities and Exchange Commission. First appointed by . Jun 19,  · The U.S. Securities and Exchange Commission (SEC) is an independent agency of the United States federal government.

The SEC holds primary responsibility for enforcing the federal securities laws, proposing securities rules, and regulating . Reports that the Institute of Chartered Accountants in England and Wales will meet with United States Securities and Exchange Commission chairman Arthur Levitt, to discuss the knock-on effect of the federal agency's crack-down on auditor independence regulations.

See Remarks by Chairman Arthur Levitt, Securities and Exchange Commission, "The Numbers Game," New York University Center for Law and Business, Sept. 28, The AICPA is a premier national professional association for CPAs in the United States that provides technical support, standard setting (GAAP) and guidelines in conjunction and.

Arthur Levitt Sr., New York State Comptroller, Arthur Levitt, Jr., was chairman of the United States Securities and Exchange Commission from to See also. United States Army portal: References. Obit in TIME Magazine on May 19, Former Chairman of the US Securities and Exchange Commission.

Arthur Levitt Jr. Papers