Week Four
This week we explored Securties Law according to the US Law. In this reagrd, we learnt that the registeration of securties is at the core of the Secureties Act. It is important to be aware of the reasons for registering sercurties, inculding but not limited to raising captial in the most economical way to raise money. This, in turn, provides a company with liquidity that helps the copmany grow in its business and pay its debts.
Yet,there are disadvantages of the registeration of securties. A major disadvantage of such registeration is the direct and indirect expense, which is resulted becasue of the reporting requirements, and the dealings with securties analysts and shareholders.
Remebmer that we deal with debt securties such as bonds, equity securties like shares and derivatives