Now Entering Russ's World
Capital markets law is used to control and supervise the operations of capital markets. The laws in this field are generally similar across many countries due to heavy borrowing. However, some country deviate from the standards laws by adding or removing sections depending on the specific need of the industry in that country. Introduction of online platforms has also seen enactment of new laws to cater for the platforms.
For a business to operate, it requires adequate capital. When a business is faced with acute shortage of operating capital, the current trend is to raise the capital from investors through securities, bonds or loans. The capital can be used either to finance the existing operations of the business or to expand the business by introducing new products or opening branches in new geographical areas.Like any other financial transaction, the process of raising funds by a firm must be done within the set laws of the country. The firm raising funds must clearly state the amount of capital they want to raise, the period in which it will be raised and what it will be used for. This information must be sent to the market regulator for review before the firm is given a go ahead.
Capital markets law also sets the procedure to be followed during fundraising. The law appreciates the hard work investors have put to raise the money they are investing and aims at protecting the money. It seals of all loopholes that may exist during a fundraising to ensure that corrupt individuals do not divert the money invested by the investors. The laws are strict and are enforced on all the entities operating within the capital markets.
Yahoo Finance has many articles about how capital market lawyers have wide knowledge of capital markets law. A part from knowing this law, the lawyers are also required to understand other related laws. This helps the lawyer to carry out his or her advising duty effectively. Sam Tabar, as his Twitter can show you is a capital markets lawyer with Schulte Roth and Zabel LLP, is an example of a lawyer who has effectively achieved this status.
During a transaction, at least two lawyers must be present. In big transactions, the lawyers usually work as teams of lawyers due to the large number of documents involved. The team can be made up of partners, associate lawyers and trainee lawyers. Most of the transactions that Sam Tabar has been involved in took between a few weeks to a couple of months to complete.