A Ponzi scheme is a fraudulent investment operation where the operator, an individual or organization, pays returns to its investors from new capital paid to the operators by new investors, rather than from profit earned by the operator. Operators of Ponzi schemes usually entice new investors by offering higher returns […]
Primer
Reverse Stock Splits Explained
New investors are often confused by a reverse stock split. Simply put, a reverse stock split reduces the number of outstanding shares of the company, thereby increasing value of the individual shares. Think of it as the reverse of the typical stock split, where an investor receives X number of […]
Can a Non-Citizen Be An Accredited Investor?
There is no residency or citizenship requirement in the definition of an accredited investor. Many entities and individuals are accredited investors. Rule 501 of Regulation D defines the term. For individuals, accredited investors include: Any director, executive officer, or general partner of the issuer of the securities being offered or sold, or any director, executive officer, […]
What is Securities Arbitration?
Securities arbitration has become the most often used method of resolving disputes in the securities industry. Since the late 1970’s, FINRA and its predecessors have required brokerage firms and stock brokers into securities arbitration to resolve their disputes with each other, and with their customers. That requirement led to brokerage […]
The Wells Notice SEC/FINRA Investigations
By Mark Astarita Being the subject, target, or even a witness in an SEC or a FINRA investigation is not a pleasant experience. As I discussed in my column “When the SEC Comes Calling” a financial professional’s involvement in a regulatory investigation or proceeding is extremely serious, and can be […]
Overview of the Securities Arbitration Process
Securities Arbitration is not like any other proceeding Nationally known securities attorney Mark Astarita has represented broker-dealers, investment advisers, hedge funds, investment partnerships, individual brokers and investors, across the country for over 30 years in well over 600 securities arbitrations. To find out if he can help you with your […]
Securities Lawyer, Attorney
Mark J. Astarita is nationally recognized securities attorney, admitted to practice law before all state and federal courts in the States of New York and New Jersey as well as the United States Supreme Court. Mr. Astarita graduated cum laude from New York Law School and has practiced law primarily as a […]
What is Securities Law?
Securities law refers to the body of law that relates to the financial markets. That includes the oversight of stock brokers and investment advisers, the stock exchanges themselves, the brokerage firms, the sale of securities, mergers, acquisitions and much more. In short, if it in any way involves an investment […]
Hearing Hearing
Securities arbitrations, in fact, all arbitrations, are conducted in the same manner that a court trial is held, without some of the formalities. There are opening statements, first by the attorney for the claimant (typically a customer) and then by the respondents (the broker and/or his firm). The openings are […]
The Firm’s Lawyer or Your Own Lawyer?
Should you and the firm use the same lawyer in a customer dispute? Recent disputes change the landscape. By Mark J. Astarita, Esq. A repeating question at my web site comes from brokers who are named in an arbitration proceeding by a customer, and whose firm offers to provide the […]
