Monday, March 15, 2010

Investor Relations 5

Ch.5 Investor Relations, deals with the protection of investors and the regulations of stakeholders to make sure that there isn't any scandal or inside trading going on.

There were two acts that were created to regulate what is happening between investor relations.
The first act is the Securities Exchange Act of 1934 that created the Securities Exchange Commission that deals with the conflict of interest involved when a corporate official reaps personal financial gain on information not known to the public.
That act adopted something similar called the Regulation Fair Disclosure. Their intent is to end the special relationship that existed between public companies and analysts and brokers-to the level playing field for all investors.

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