BDO Centennial Moment – Formation of the Securities and Exchange Commission
The stock market crash of 1929 shook the public’s faith in the capital markets. Although the New York Stock Exchange had required all listed companies to file financial statements in the early 1920s, it strengthened that position in January 1933 by announcing that all companies requesting permission to list their stock had to be audited by an independent certified public accountant.
One year later, the federal government got involved, passing the Securities Exchange Act and establishing the U.S. Securities and Exchange Commission (SEC) – a regulatory body that still oversees the activities of publicly traded companies.
The Seidmans realized that involvement in the stock market and the companies traded there would lead to future growth for the firm, similar to the growth of the tax practice when the Revenue Tax Act of 1913 was instituted. To better position themselves geographically, they decided to move the New York office to the heart of the financial district at 80 Broad Street – just down the road from the New York Stock Exchange.
Today, BDO specializes in helping companies go public, from the initial planning stage through the final filing of the registration statement. The IPO Readiness Center, for example, provides practical tools such as the BDO Guide to Going Public. To help companies keep current on accounting and SEC reporting developments, BDO disseminates timely newsletters and thought leadership.
