Primer

SEC Investigation
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

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A <b>Ponzi scheme</b> 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,(…)

” >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 […]

Corp Finance Investors Primer

Reverse Stock Splits Explained

New investors are often confused by a reverse seclaw.com/glossary/stock/” class=”glossaryLink” data-cmtooltip=”

What Is a Stock?<br>A stock is a security that represents the ownership of a fractional share of a corporation. This entitles the owner of the stock to a proportion of the corporation's assets and(…)

” >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 […]

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

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An insurance product that offers investors steady income payments, typically in exchange for a lump-sum investment. Account values of variable annuities, a mix of life insurance, mutual funds,(…)

” >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 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,  seclaw.com/glossary/finra/” class=”glossaryLink” data-cmtooltip=”

FINRA
The Financial Industry Regulatory Authority, the primary regulator for United States stock brokers and brokerage firms. For more information see our article, FINRA – The Financial Industry(…)

” >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 […]

Wells Notice, SEC, FINRA Investigation
Brokers Commentary Compliance Featured Articles Primer

The Wells Notice SEC/FINRA Investigations

By Mark Astarita Being the subject, target, or even a witness in an seclaw.com/glossary/sec/” class=”glossaryLink” data-cmtooltip=”

SEC
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.(…)

” >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 […]

Securities, Lawyer, Attorney
Law Primer

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 […]