Should the SEC Investigate, Essay Example

Abstract

This short essay is a response to the prompt which requires us to question whether or not the Securities and Exchange Commission should investigate the write-offs made by Micron Technology. The SEC is a government organization that looks after investors and helps them to avoid fraud and other potentially damaging situations. Their main goal is to ensure investor safety and security.

Should the SEC Investigate?

The SEC is the government organization responsible for protecting investors in the United States. According to their official website “The SEC oversees the key participants in the securities world, including securities exchanges, securities brokers and dealers, investment advisors, and mutual funds. Here the SEC is concerned primarily with promoting the disclosure of important market-related information, maintaining fair dealing, and protecting against fraud” (SEC). The organization is an especially important tool for shareholders.

The SEC should investigate Micron Technology for several reasons. If the corporation were operating legally in all of its departments, then why would they not wish to disclose any future sale? Also, JDS Uniphase has $250 written off for its inventory and yet the company has promised to disclose future sale. Micron Technology not only has a larger write-off but they do not want to disclose their future sale. This could be indicative of something larger – perhaps, tax evasion or fraud, though I am not jumping to such extreme conclusions. Rather, Micron Technology’s move does seem to raise a red flag.

References

How the SEC Protects Investors, Maintains Market Integrity, and Facilitates Capital Formation (Securities and Exchange Commission). (n.d.). U.S. Securities and Exchange Commission (Home Page). Retrieved July 2, 2010, from http://www.sec.gov/about/whatwedo.shtml