Federal Regulations Research Paper

2794 Words12 Pages
Research Paper One: The Role of Federal Regulations in Corporate America ------------------------------------------------- ------------------------------------------------- Richa Chopra ------------------------------------------------- ------------------------------------------------- Kaplan University ------------------------------------------------- The Role of Federal Regulations in Corporate America Introduction Dishonesty, greed, cover-ups, and bail-outs are some of the things that come to mind when we talk about the America's financial economy. Are all the hundreds of pages of regulations laid down by the government working in America's favor or is it just another way for the CEOs and the executives for fortune 500 companies to manipulate the system and its people? The corporate governance system started with the corporate debacles and the ultimate crash of the stock market in the late 1920s. As a result government stepped in and created regulations such as the Securities Act of…show more content…
Texas Gulf Sulphur Company on the issue of fraud in the sale of securities. Texas Gulf Sulphur discovered a mine of inestimable value in an exploratory drilling project near Timmins, Ontario which they decide to cover-up to buy additional land in the surrounding areas before the news leaked out and bought the company's stocks, calls and options to take advantage of the situation. The SEC filed suit against the company and the 13 defendants in violation of Section 10 (b) Rule 10b-5 on the grounds of insider trading. The result of this was a step towards defining what persons may be classified as "insiders” and what restrictions are placed on such persons' activity in the stock market (Isaacs, 1967). Under this Act, corporate insiders who have been entrusted with material undisclosed information cannot trade in the company’s securities or include others in such activity until the material information has been disclosed to

More about Federal Regulations Research Paper

Open Document