Essay Corporate and Securities Law Research – Law Assignment Help

Assignment Task

For some time, there has been a rough separation between corporate and securities law. Securities law requires public companies to make disclosures to investors while corporate law sets forth a regulatory system in the internal affairs and operation of the corporation. Public companies in the United States must comply with both federal securities law and state corporation law. Securities law is uniform and mandatory because investors have a common interest in fair valuation when trading. Corporate law is diverse and enabling because the ownership interests of investors are more difficult to reconcile.

Many authors argue that securities law is a federal version of corporate law

However, one can point out a couple of differences between corporate law and securities law. Corporate and securities law can be distinguished based on the type of protection they provide to the investors. Both corporate law and securities law serve to protect the investors’ interest, but they do so at two different phases of the investment process.

Securities law protects investors as traders, while corporate law protects investors as owners. For example, when purchasing or selling stock, an investor can be vulnerable to make a transaction at an unfair price. During the period when an investor owns a stock, he can be vulnerable to corporate misconduct. Distinguishing between trading and ownership protection provides a strong basis for regulating corporate law and securities law in different ways.