Securities Law Commons^™

Private Cause Of Action Under Section 17(A) Of Securities Exchange Act Of 1934; Doctrine Of Implication; Touche Ross V. Redington, James L. Miller

Akron Law Review

The Securities Exchange Act of 1934 is principally designed to protect investors through regulation of securities transactions on the organized exchanges and in the over-the-counter markets. In addition to the creation of the Securities and Exchange Commission as its leading enforcement mechanism, the 1934 Act provides for criminal penalties and, in certain instances, private causes of action for individuals who incur damage by others' violations of the Act. However, courts will often imply a civil cause of action for an injured party despite the absence of express statutory authorization.3 Subsequent judicial attempts to determine when supplemental civil relief can or …

The Elusive Concept Of Control In Churning Claims Under Federal Securities And Commodities Law, Patricia A. O'Hara

Patricia A. O'Hara

No abstract provided.

The Elusive Concept Of Control In Churning Claims Under Federal Securities And Commodities Law, Patricia A. O'Hara

Journal Articles

Account executives—when serving as either a broker or a dealer—stand in a conflict of interest position with their customers. The brokerage house profits through commissions from the execution of the transaction regardless of whether the customer profits on the investment. Account executives who do so, violate the fiduciary duties he owes to a customer in favor of his own self-interest. The customer can bring an action for churning under federal securities and commodities laws if he or she can demonstrate that the broker excessively traded an account over which the broker exercised control in order to generate commissions for himself …

Racing Syndicates As Securities, Rutheford B. Campbell Jr.

Law Faculty Scholarly Articles

It is not difficult to understand why horses like Devil's Bag, Chief's Crown and Spend A Buck are syndicated during their racing careers. The owners of such horses find themselves with an asset worth millions of dollars, but the asset has the potential to decrease significantly in value if the racing fortunes of the horse change. That creates pressure for owners to disinvest, at least partially, and spread the risk of loss. Investors, on the other hand, are often just as anxious to invest. Not only is there the chance of earnings and appreciation if the horse continues to win, …

Judicial Activism In The Enforcement And Interpretation Of The Federal Securities Laws, John M. Sheffey

University of Arkansas at Little Rock Law Review

No abstract provided.

Some Practical Questions Concerning The Effect Of The Proposed Federal Securities Code On Civil Litigation, J. Vernon Patrick, Jr.

Vanderbilt Law Review

A major impetus for the launching of the Federal Securities Code project in 1969 was the view, widely held by businessmen and their lawyers, that it was far too easy for investors to bring class action suits under the federal securities laws, seeking multi-million dollar judgments against business corporations, directors, accountants, and lawyers.' The business community's concern about possible exposure to large judgments in securities litigation was heightened by the news that plaintiffs had obtained a judgment in a class action brought against the issuer and several "outside director"defendants in Escott v. Bar Chris Construction Corp., and by several United …

Truth In Financial Statements: An Introduction, Douglas W. Hawes

Vanderbilt Law Review

When used in relation to a periodical, the word "symposium"refers to "a collection of opinions on a subject." The word derives from the Greek "sympinein," to drink together, and originally was applied to a drinking party in which conversation and intellectual entertainment played a vital part. To our "party" we have invited a distinguished group of authors representing in some cases widely differing points of view. They have contributed articles dealing with various aspects of these problems of financial reporting and auditing. We leave to you, the reader, and to those engaged in the continuing debate the final judgment on …

We Often Paint Fakes, Abraham J. Brilof

Vanderbilt Law Review

To begin, the profession has disseminated the message far and wide that its members are the high priests responsible for the interpretation and application of a very special body of knowledge known as "generally accepted accounting principles" usually referred to as "GAAP." On analysis one quickly discerns that no such defined body of principles exists. Some commentators maintain, in fact,that not a single accounting precept is deserving of the designation"principle" and these exegetics urge that the critical phrase be changed to read "generally accepted accounting standards," hence" GAAS." Others, reflecting on the evils perpetrated in the name of GAAP and/or …

Current Problems Of Accountants'responsibilities To Third Parties, T. J. Fiflis

Vanderbilt Law Review

When the auditor begins the audit program, he will record in "working papers" his work and findings. Each page will be dated and initialed by all persons who dealt with it. The papers should be indexed and bound and retained for some years. They should also be comprehensible as they are intended for use by others as well as for later use.

A trial balance is usually the first working paper. Other standard working papers are data from the corporate charter, by-laws,and minutes and analyses of accounts, prescribed by the audit program. One of the last working papers will be …

Accounting Standards In The United States And The United Kingdom: Their Nature, Causes And Consequences, George J. Benston

Vanderbilt Law Review

The purpose of this article is to account for the existence of differing accounting standards in the United States and the United Kingdom despite a common language, common practice and a fundamentally common political and economic base in the two countries. What factors explain the fact that, while accounting standards in the United States are codified and explicit, they remain on the whole uncodified and implicit in Great Britain? From which system does the investor more likely benefit? The first section of this paper begins with descriptions of auditing and reporting standards in each country. The factors which influence the …

The Establishment Of Generally Accepted Accounting Principles And Generally Accepted Auditing Standards, James F. Strother

Vanderbilt Law Review

This article will discuss accounting principles and auditing standards and the respective roles played in their development and regulation by the Securities and Exchange Commission, the organized accounting profession and other public and private agencies. Accounting principles and auditing standards comprise two fundamentally different and distinct bodies of convention and practice. Generally accepted accounting principles and generally accepted auditing standards are those principles and standards which for a number of reasons have come to be accepted and applied by issuers, accountants, and auditors. Combined with the procedures and techniques attending their observation and application, generally accepted accounting principles and auditing …