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l How to identify thesource of the federalgovernment’s powerto regulate businessl How to identify thetwo statutes thatregulate the sale ofsecuritiesl How to identify thestatutes that regulateantitrust activitiesl How to identify thestatutes that regulateenergy and theenvironmentGovernmentRegulation ofa CorporationRegulating Corporate GrowthThe law generally views the growth and expansion of corporationsas a good thing, as long as it does not restrain competition. Not everybodyagrees, however. Some people feel that expanding a corporationdoes not necessarily increase productivity and may actually reduce competition.On the other hand, some claim that expansion allows foreconomies of scale, and may save a fading company that might notsurvive otherwise. Adding to the debate are the problems that arise whenexpansion takes place. Setting things right often falls on the shouldersof the government. The federal government has passed a series of actsto regulate corporate expansion. These acts seek to protect the interestsof both corporations and shareholders.Understanding how thegovernment regulatescorporate activities willhelp you protect yourrights as a corporateshareholder, especiallyif a corporation getsinvolved in antitrustactivities.l commerce clausel securityl Securities andExchange Commission(SEC)l registration statementl prospectusTHE SECURITIES AND EXCHANGE COMMISSIONThe Securities and Exchange Commission was created bythe Securities Exchange Act of 1934. What is the primaryrole of the Securities and Exchange Commission?646 Unit 6: Starting a Business