The 1933 Act was the first signicant federal law that was used to control the sales and offer securities. This was governed by state law before the act was enacted. This act required the shareholde to desclose all the material information the the shareholder needed to go into an investment.
The 1934 Act(6th june 1934) was placed to govern securities in stock, debentures and bonds. This act also established the securities and exchange commission(SEC). This Act(1934) regulate the relationship between the broker and the issuer.
This acts were neccesary for the stock market had to be regulated to prevent cooparate misuse in the sales and offering of securities. The powers given to SEC of licencing and regulating the stock exchange, companies, brokers and dealers involved in the trade was appropriate for it brought enforcement action against dealers/brokers who would be involved in fraud or give false information and also being involved in acts that are a violation of these Acts(1933 and1934).
The Act has helped reduce criminal violations by allowing the SEC to be a part of the criminal law enforcement agencies. This is made possible by making the companies to give in therie periodic reports for instance the quaterly, the annual report and the narrative account which explains how the company has been performing in a given time period.
If this laws were not enacted the investor would not have been able to make sound decision in order to nvest in the capital market for the companies would not be obliged to give out their financial reports for the year or the stipulated time period. This would have led to losses by the investors and decrease in the public trust on the firm leading to incresed fraud.
Badgets are important for they can be used to link objective resources, this puts the managers on line to know whwat is expected of them, it helps in identifying the resources that may be required by a person or a company,
gives the best directions in decision making, stresses on future events strengthening manegerial decision, allows for productivity leading to reduced cost of production, a badget can also help a company check on its weaknesses, can help a company avoid any future losses and aid the coordination within departments leading to motivation of the workers leadind to increased production.
Some of the disadvantages of having a budget may include: when badgets are so ambitious they sometimes may not be achived, budgets dont look into services to the customer, workers may look at a badget as adevice put up to bring them down leading to low morale amongst the employee, disputes may arise due to allocations and may also lead to over estimation of cost.