First Teaching and Research Trip, Bo Li, November 2000

American Securities Regulation

Bo Li, The Law School of Renmin University of China Beijing, China

Course Syllabus

This is a short course, which lasts for 18 hours. The purpose of the course is to give students an overview of the American securities regulation, and a foundation for understanding the underlying philosophy, historical background and institutional structure of securities laws in the United States.

The class time is 9:30am to 11:30am every Monday to Wednesday. On Monday, November 20, there will be an afternoon class (2:30-4:30pm) in addition to the regularly scheduled class in the morning. There will not be any class on Wednesday, November 22.

There will be a short take-home final exam distributed on Monday, November 20 and due on Tuesday, November 21 in class.

I will have office hours from 1:00pm to 3:00pm on Monday, November 13 and Sunday, November 19. Students are encouraged to come to the office hours to ask questions.

Reading Materials

Securities Regulation, Cases and Materials, Eighth Edition, Richard Jennings, Harold Marsh, John Coffee and Joel Seligman, The Foundation Press, 1998 (hereinafter, "JMCS")

Securities Regulation, Third Edition, Louis Loss and Joel Seligman, Aspen Law & Business, 1998 (hereinafter, "Loss & Seligman")

The Securities Act of 1933 (hereinafter, the "33 Act")

SEC Rules under the Securities Act of 1933 (hereinafter, the "33 Act Rules")

The Securities Exchange Act of 1934 (hereinafter, the "34 Act")

SEC Rules under the Securities Exchange Act of 1934 (hereinafter, the "34 Act Rules")

SEC Regulation S-K (hereinafter, "Regulation S-K")

Various Forms under 33 Act and 34 Act

Problem Sets

Miscellaneous Materials

Generally, you do not need to read footnotes in the reading materials except where required otherwise.

Course Plan and Reading List

November 6: The History of Securities Regulation

Loss & Seligman, pp. 169-223 (including footnotes 41and 42).

November 7: The U.S. Securities Market and Its Regulatory Framework

a) JMCS, pp. 1-6, 22-34, 86-110; b) Loss & Seligman, pp. 224-231, pp.240-281.

November 8: The 33 Act -- The Basic Prohibitions of Section 5 (Part I)

a) JMCS, pp. 111-114, 119-133 b) Problem Set 1, Problems 4-5 to 4-14 c) 33 Act, §§5, 17, 2, 3, 4, 6, 7, 8, 10 (and Schedule A), 11, 12, 13, 19, 20, 24, 9, 22, 23 d) 33 Act Rules 135, 135a, 137, 138, 139, 153a e) 34 Act, §§13, 15

November 13: The 33 Act -- The Basic Prohibitions of Section 5 (Part II) a) JMCS, pp. 133-173 b) Problem Set 1, Problems 4-15 to 4-31 c) 33 Act, §§5, 2, 4, 10 d) 33 Act Rules 134, 135, 135a, 153, 153a, 174, 418, 424, 427, 430, 430A, 431, 432, 434, 460, 461, 463 e) 34 Act, §§12, 13, 14, 15 f) 34 Act Rules, 15c2-8 g) Regulation S-K, Items 501, 502, 512(i) and 601 Instruction 1 h) Miscellaneous Materials, Uniform Commercial Code (U.C.C.), §8-319

November 14: The 33 Act -- Disclosure and Registration Statement a) JMCS, pp. 174-187, 219-239, 269-297, 1011-1019, 1144-1149 b) Problem Set 2 c) 33 Act, §§7, 8 d) 33 Act Rules, Regulation C, Rules 400-418, 421, 425, 425A, 426, 459-463, 470-479 e) 34 Act, §§12(a), 12(b), 12(g), 13, 14, 15(d) f) 34 Act Rules, Regulation 12B, Rules 12g-1, 14a-3, 14c-3 g) Forms 10, S-1, S-2, S-3 h) Regulation S-K

November 15: The 33 Act -- Liability and Due Diligence a) JMCS, pp. 875-908, 913-936, 946-962 b) Miscellaneous Materials, Feit v. Leasco Data Processing Equipment Corp. c) 33 Act, §§11, 12, 24 d) 34 Act, §§9, 18, 16(b), 21D, 32 e) Regulation S-K, Item 512(h)(3)

November 20 (class 1): The 33 Act -- Definition of "Securities" and "Exempted Transactions" a) JMCS, pp. 306-319, 324-331, 343-366, 378-396, 401-428, 503-507 b)33 Act, §§2(a)(1), 3(b), 4(2) c) 33 Act Rules 501-508

November 20 (class 2): The 34 Ac: Rule 10b-5 a) JMCS, pp. 1057-1058, 1011-1019, 1144-1149, 1129-1139, 1176-1180, 1124-1129, 1197-1201 b) 34 Act, §§10, 12(b), 12(g), 13, 14(e), 15(d), 16(b) c) 34 Act Rules 14a-9, 10b-5