In 1929, the stock market crashed and lost millions of people’s money. This led to the Great Depression which was a crucial point in United States History. This low point led the government to examine what exactly caused this crash and determined that stock markets of the time were creating their own rules and were giving inaccurate disclosure to their clients. This led to a code and enforcement agency being created to make a requirement to what disclosures were pertinent.
This enforcement agency is called the Securities and Exchange Commission. This commission regulates stocks and memberships when a company is transferring equity from itself to another company.
Securities Law is one that protects the companies during this transaction. Furthermore, a securities lawyer helps each side comply with regulations and laws, and makes sure the process is being done through legal actions.
Securities lawyers prevent economic hardship by ensuring legality at a smaller scale. These actions work to prevent situations such as the Great Depression from occurring again and help keep our economy and businesses in a steady state of being. To learn more about Securities law, follow along with the video or give a law firm near you a call if you are looking to employ a securities attorney.