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 […]
Primer
Securities Arbitration Overview-2023 Update
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 […]
Regulation CF Equity Crowdfunding
What is Regulation CF? Regulation CF’s crowdfunding rules are in Section 4(a)(6) of the Securities Act. It allows startups and small businesses to use the internet to raise capital through equity investments from a large number of investors. Regulation CF is available for offerings up to $1 million, giving accredited […]
What is FINRA
FINRA, the Financial Industry Regulatory Association, is the successor to the National Association of Securities Dealers and is authorized by Congress to regulate and oversee the broker-dealer industry, insuring that it operates fairly and honestly. It oversees over 4,000 brokerage firms and more than 600,000 brokers across the country—and analyzes […]
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, […]
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 […]
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 […]
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 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 […]