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Playlist Finance: Investing 37 videos
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What is the difference between load and no load? Load and no load are terms used for different mutual funds. Load mutual funds charge a fee or comm...
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Description:
What's the SEC? Easy. Seals Eating Candy. Or maybe Silly Elephants Canoodling? We can never remember. Guess it's time to watch this video and refresh our memories.
Transcript
- 00:03
Finance a la shmoop what is the SEC right well the SEC or
- 00:09
Securities Exchange Commission has nothing to do with a realtor getting 6% [Realtor receiving a cheque off a man]
- 00:15
Commission when they sell your house commission here is about committing to
- 00:20
do right by investors well why do we have a whole commission or army of [An army of men wearing suits and facepaint]
- 00:24
lawyers dedicated to the fair exchange of securities well because there was an
Full Transcript
- 00:29
era brutally demonstrated in the 1920's when fast-talking sleazy wheelers and dealers
- 00:35
ripped off everyone from ma and pa kettle to aunt an uncle teapot yeah they would [Dealer ripping off people in the street]
- 00:42
prey upon the uneducated the uninformed the gullible the greedy painting stories
- 00:48
of great riches that the would-be investors could have if they just sold [Man telling a farmer to invest his land]
- 00:52
their twenty thousand acre farm and parted with ten grand to buy this
- 00:57
beautiful park that real estate developers wanted to turn into high-rise [Farmer receives a real-estate development]
- 01:01
condos but in fact many of those lands were actually swampland the only folks [Farmer holding a shovel in a swampland]
- 01:07
who might be moving in there were beavers deer flies and alligators and it
- 01:11
wasn't just real estate securities that were abused fake companies Lego bridge [Officer on stage waving baton]
- 01:17
building company bumper stickers R Us you know like that sprung up everywhere
- 01:22
with crazy promises that sounded plausible to those with barely a [Boy in a white vest beside a bumper sticker]
- 01:26
third-grade education but they were total scams the American public tired of
- 01:31
reading about uneducated investors losing all their money to fast talking [American man reading about investors]
- 01:35
sales people lobbied Congress to create the SEC in 1934 with its core pursuit [People protesting outside of congress]
- 01:41
being to regulate the buying and selling of securities in America yep pretty much
- 01:47
[Policeman blows his whistle] these were the investing police myriad laws and structures were put into place
- 01:52
mainly around full and fair disclosure of whatever security a money raising
- 01:56
company was selling that is if it really was swampland you had to disclose that [Man with an aligator for a head in a swampland]
- 02:03
it was swampland you couldn't claim it was something it wasn't using fancy
- 02:07
vocabulary that a normal ordinary person couldn't [Man confusing someone with fancy vocabulary]
- 02:11
understand like you couldn't you know polish a piece of crap and call it
- 02:16
marble the broader goal here was not to give Americans advice on what to buy and [American boy thinking about buying or selling]
- 02:21
sell but rather just to have full and fair disclosure of the facts so that
- 02:27
when a buyer did buy and got taken well at least then all the facts she needed [Woman meeting with an investor]
- 02:32
to make a rational and reasonable conclusion were right there in front of
- 02:36
her so hey anyone up for a game of marbles [Man throwing poo on the floor]