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Finance: What is The Securities Amendments Act Of 1975? 9 Views


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Description:

The Securities Amendments Act of 1975 created a national market clearing system to standardize stock prices and transaction costs from state to state.

Language:
English Language

Transcript

00:00

finance a la shmoop what is the Securities Amendments Act of 1975

00:08

alright people before 1975 we're thinking Nixon era here trading stocks [People greeting Nixon]

00:14

was very much a regional thing New York was the Sun and the rest of the world

00:20

well more or less just orbited the 1975 Act created a national market clearing [Countries orbiting galaxy]

00:25

system so that a share of IBM traded for generally the same price in California

00:30

Georgia New Hampshire and New York this way smaller less liquid regional systems [US states appear beside IBM]

00:37

or regional pieces or regional trading bins weren't penalized with higher

00:42

transaction costs than you know those suit-and-tie wearing wolves on Wall [Transaction costs crossed out]

00:47

Street and that's pretty much it that's what the 1975 securities Amendment Act

00:51

was all about basically it just was passed to ensure that the SEC would

00:55

consider any new regulation that might come down the pike from that point

00:59

forward in terms of fairness across a level playing field [Moving through a tunnel]

01:03

nationally yeah fairness or the wind [Football player placing football on the field]

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