TITLE OF THE ARTICLE: The Securities and Exchange Commission: A Consumer Protection Body during Public Offers.
AUTHOR:
Rahmatu Ishaq Ahmed, Rahmatu Ishaq Ahmed (Mrs.) Lecturer, Corporate Law Department, Nigerian Law School, Kano Campus.
ABSTRACT
Investment and securities business is at the root of economic development. Through the capital market, companies and governments mobilize capital for investment, while offering opportunity to investors to seek profitable outlets for their funds. Because complex financial processes are often involved, and large numbers of investors participate, the need for guarding the mechanism for those transactions becomes apparent. Investors need to be protected, just as the process needs to be kept viable. This article examines the responsibility placed on the Securities and Exchange Commission to regulate the capital market and ensure that investors are protected and concludes that it is not enough for SEC to just ensure that necessary disclosures are made by companies offering their securities for sale, but that adequate mechanism must be put in place to ensure the veracity of such disclosures.
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