Primer

otc markets
Brokers Corp Finance Primer Public Offerings

OTC Markets

The over-the-counter market is where securities which do not trade on an exchange are traded. Securities traded on the this market are typically from smaller companies that do not meet the listing requirements from the exchanges. The OTC market is the default exchange for some securities, like corporate bonds. Alternatively, […]

SPAC Rules
Other Primer

Can The SEC Bring Criminal Charges?

While the SEC has extremely broad investigative and enforcement powers, it cannot file criminal charges. It can, and often does, work with the Department of Justice and the United States Attorney’s Office to bring those charges. The SEC and the DOJ often work together, with the SEC sending its more […]

Investors Primer

What is a Ponzi Scheme

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 […]

Whistleblower independent analysis
Brokers Corp Finance Investors Primer Private Placements

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, […]

indexed annuity
Investors Primer

What is an Indexed Annuity

An indexed annuity is a complex financial product. It is a type of contract between an insurance company and the investor where the company promises to provide returns linked to the performance of a market index such as the Dow Jones Industrial Average or the S&P 500. In the typical […]

Arbitration Agreement
Arbitration Primer

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 […]

sec subpoena
Brokers Compliance Featured Articles Primer

The Wells Notice SEC/FINRA Investigations

By Mark Astarita Being the subject, target, or even a witness in an 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=”https://www.seclaw.com/glossary/sec/” data-gt-translate-attributes='[{“attribute”:”data-cmtooltip”, “format”:”html”}]’>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 […]