What is the purpose of the Public Utility Holding Company Act of 1935?

The Public Utility Holding Company Act of 1935 was created with the purpose of bringing more regulation and oversight to holding companies, which are corporations with ownership in other companies. This act was passed in response to concerns over the lack of disclosure of information regarding operations and finances of holding companies, the amount of debt the companies were taking on, and the effectiveness of the holding company systems. Under the Act, holding companies must seek approval from the Securities and Exchange Commission (SEC) in order to exist. Additionally, the SEC can limit how much debt a holding company can take out and must approve any mergers or acquisitions the company makes. Furthermore, holding companies must provide information about their operations and finances to investors and the public. Ultimately, the purpose of the Public Utility Holding Company Act of 1935 was to bring more regulation to holding companies, particularly those operating in the utility industry. This Act was created to give investors and the public more insight into the operations and finances of holding companies, and to ensure these companies act responsibly when it comes to borrowing money and making investments.

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What is the purpose of the Public Utility Holding Company Act of 1935?

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