Disclousuer requirments in securities regulation between Saudi Arabia Research Paper - 1

Disclousuer requirments in securities regulation between Saudi Arabia and united States (compareson) - Research Paper Example Disclosures imply that public should be informed of any investment decisions, while the undermining of this confidence leads to the collapse of the securities market harming national economy for a very long period of time. Saudi Arabia is considered to be one of the largest developing stock markets in the world. Nowadays it shows increasing demands for various investments in corporate securities. While in 2006, Saudi Arabia securities market was regarded as the market which suffered from the lack of transparency and disclosure credibility less than average due to the economic crisis happened in this state. Great part of the investors received no compensation for the caused damages and had no any practical possibility to protect their rights with respect to the securities rights. Thus, some scholars define the current legislation of Saudi Arabia on the securities law and its disclosure as existing in place, but not functional in practice. Despite this fact, some states share the views that Saudi Arabia is one of the countries that has relatively strong disclosure requirements. This country is able to ensure investor’s protection during exercising of business transactions. Therefore, the main purpose of this paper is to describe the disclosure requirements applicable to the securities in Saudi Arabia and it comparison with the strong securities market conditions prevailing within the USA market. In Saudi Arabia, some principles applicable to the issuers of securities exist. Hence, issuers that offer securities through public offer are always subject to disclosure requirements involving shareholder voting decisions and equal treatment to each other. In any case, the body governing the issue of securities requires submission of the reports on the disclosure of significant amount of shareholders of the companies. At the same time, Saudi Arabia implements main