Kinder Morgan, Inc. Fourth Quarter 2024 Earnings Call Transcript

The Securities Litigation Reform Act of 1995 and the Securities and Exchange Act of 1934, along with specific non-GAAP financial measures, are essential components in the realm of financial regulations. These laws and measures are crucial for upholding transparency and accountability within the financial sector.

The Securities Litigation Reform Act of 1995 was enacted to reform securities litigation in the United States, aiming to address abusive practices that were prevalent in securities lawsuits at the time. The Act sought to reduce frivolous lawsuits and provide protections for companies and individuals against unwarranted litigation. By establishing certain guidelines and requirements for securities lawsuits, the Act helped to promote fairness and efficiency in the legal system.

Similarly, the Securities Exchange Act of 1934 was a pivotal piece of legislation that was passed in response to the stock market crash of 1929 and the ensuing Great Depression. The Act was designed to regulate the securities industry and protect investors from fraudulent practices. It created the Securities and Exchange Commission (SEC) to oversee the enforcement of federal securities laws and to ensure fair and honest markets. The Securities Exchange Act of 1934 continues to play a vital role in the regulation of the securities industry to this day.

In addition to these regulatory acts, non-GAAP financial measures are also an important aspect of financial reporting. While Generally Accepted Accounting Principles (GAAP) serve as the standard for financial reporting, non-GAAP measures provide additional insights into a company’s performance that may not be fully captured by GAAP standards. However, it is crucial for companies to provide clear and transparent disclosures when using non-GAAP measures to ensure that investors are fully informed about the company’s financial health.

Overall, the Securities Litigation Reform Act of 1995, the Securities Exchange Act of 1934, and non-GAAP financial measures all play critical roles in the financial landscape. These regulations and measures help to maintain integrity and trust in the financial markets, protect investors from fraudulent practices, and ensure that companies provide accurate and transparent financial information to the public. By adhering to these laws and guidelines, companies can uphold ethical standards and build confidence among investors and stakeholders.