Regulation of Foreign Securities in The US

Running Head : Regulation of Foreign Securities in The US

Regulation of Foreign Securities in The US

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Introduction

There are essentially two methods by which foreign access to US securities are regulated in the US . One way is by virtue of the US public market and the other is by private offerings in the US by foreign issuers (Greene , Rosen , Silverman , Braveman and Sperber , 2005 ) The initial Securities Exchange Act 1934 created the Securities and Exchange Commission to ensure that the provisions contained in the

Securities Exchange Act 1934 and the Securities Act 1933 Act are complied with (Wigmore , 1985 , 526 ) 20263 ) In all events , foreign securities brokers and dealers are required to register with the Securities Exchange Commission or to apply for an exemption in to negotiate and trade with US investors in a manner analogous to the requirements set forth for US investors

The approach taken is one that emphasises oversight , disclosure and transparency . The regulatory process emanates from the Securities Act 1933 , the Securities Exchange Act 1934 each of which have been amended several times since inception . The purpose of this research is to examine the regulatory process , its development and evolution within the United States with respect to foreign securities

Literature Review

Background

Foreign securities are offered on the public market when they are offered publicly and their securities are listed for public trade in the US (Hodgdon , Tondkar and Coffman , 2003 , 133 ) Private offerings occur when foreign securities are offered directly...