Securities Law Dictionary

Private Placements Securities Law Dictionary

Accredited Investor Definition

Under the federal securities laws, a company may not offer or sell securities to investors without registration with the SEC</div><div class=glossaryItemBody>The United States Securities and Exchange Commission is the federal agency charged with the regulation and oversight of the securities markets, public companies and securities professionals.(…)</div>” href=”” data-gt-translate-attributes='[{“attribute”:”data-cmtooltip”, “format”:”html”}]’>SEC. However, there are a number of registration exemptions which ultimately expand the universe of potential investors. Many exemptions require that the investment offering be made only to persons who are accredited […]

Securities Law Dictionary

Churning – Definition and Cases” data-gt-translate-attributes='[{“attribute”:”data-cmtooltip”, “format”:”html”}]’>Churning – in a churning claim, the customer alleges that the broker purchased and sold securities solely to generate commissions, without regard to the customer’s investment objectives or goals. In the typical churning case, the customer must prove: 1) that the broker controlled the account; 2) that the trading was […]

FAQ Featured Articles Investors Primer Securities Law Dictionary

What is a Security?

A security is a form of ownership in an entity. While some believe that in order to be a security the instrument must be traded on a market, the legal definition of a security is much broader. The definition is important, because if the instrument is a security, then the federal and state securities laws apply to the purchase and sale of that instrument. We define and explain the different types of securities

Securities Law Dictionary

FINRA – Financial Industry Regulatory Authority

The” data-gt-translate-attributes='[{“attribute”:”data-cmtooltip”, “format”:”html”}]’>Financial Industry Regulatory Authority, known as FINRA, is a private corporation which is known as a “self regulatory organization.” meaning that is has the authority to regulate its membership. FINRA’s main functions are FINRA Enforcement and FINRA Dispute Resolution FINRA is the primary regulator for the securities industry, and […]

Case Law Law Securities Law Dictionary

Control person liability requires culpable participation.” data-gt-translate-attributes='[{“attribute”:”data-cmtooltip”, “format”:”html”}]’>Control person liability does not lie unless the controlling person was, in some meaningful sense, a culpable participant in the fraud. General deficiencies in supervision, are insufficient, liability requires culpability regarding specific trades and misrepresentations. Wallace v. Buttar, 02 Civ. 4297(RWS) (S.D.N.Y. 1/8/03). Appealability * Award Challenge * Vacatur of […]