The Securities Exchange Act of 1934 contains several provisions that impact entrepreneurs:
Registration of Securities: Public companies must register their securities with the SEC, providing detailed financial statements and other significant information. Periodic Reporting: Companies are required to file periodic reports, including annual reports (Form 10-K), quarterly reports (Form 10-Q), and current reports (Form 8-K) to keep investors informed. Prohibition of Fraud: The act prohibits fraudulent activities in the securities markets, including insider trading and market manipulation. Proxy Solicitations: Companies must disclose all relevant information during proxy solicitations to ensure shareholders can make informed decisions. Broker-Dealer Regulation: The act regulates brokers and dealers to maintain fair and honest trading practices.