The SEC Division of Enforcement is responsible for investigating potential securities law violations and bringing enforcement actions against individuals and entities that have violated the securities laws. The Division is also responsible for overseeing the SEC’s process for handling tips, complaints, and referrals from the public. Are SEC cases civil or criminal? The SEC has … Read more
The average cost pricing rule is a regulation that requires a company to price its products or services at an average cost that covers all of its costs. This includes both direct and indirect costs. The purpose of this rule is to prevent a company from using its pricing power to unfairly increase its profits. … Read more
A “Federal Covered Advisor” is an investment advisor that is registered with the SEC. The term “Federal Covered Advisor” also includes any investment advisor that is required to register with the SEC but is not currently registered. Which type of advisers must be registered with the SEC? There are four types of advisers that must … Read more
A deficiency letter is a formal document issued by the Securities and Exchange Commission (SEC) to a public company that has filed an incomplete or inaccurate report. The letter outlines the specific deficiencies in the report and provides the company with a deadline for correcting them. If the company does not correct the deficiencies within … Read more
SEC Form 4: Statement of Changes in Beneficial Ownership The SEC Form 4 is a filing that must be made by insiders of a public company whenever there is a change in their beneficial ownership of the company’s securities. The form is used to provide information on the nature of the ownership change and the … Read more
The SEC Form 18-K is a filing with the Securities and Exchange Commission (SEC) that is required for foreign private issuers that list their securities on a U.S. stock exchange. The form is similar to the SEC Form 10-K, but is specifically designed for foreign issuers. It contains information about the company’s business, financial condition, … Read more
The SEC Form DEF 14A is a form that is filed with the Securities and Exchange Commission in order to provide information about a company’s annual meeting of shareholders. This form includes information such as the date, time, and location of the meeting, as well as the agenda and any matters that will be voted … Read more
Basel II is an international banking regulatory framework that sets out minimum capital requirements for banks and banking groups. The objective of Basel II is to ensure that banks have sufficient capital to absorb unexpected losses and to maintain confidence in the banking sector. Basel II consists of three pillars: Pillar 1: Minimum Capital Requirements … Read more
Churning occurs when a broker excessively trades a client’s account in order to generate commissions. This practice is also known as “twisting.” Churning is considered a form of securities fraud and is strictly prohibited by FINRA Rule 2111. What is an example of churning in real estate? Churning is a term used to describe a … Read more
A Form 424B5 is a filing with the Securities and Exchange Commission (SEC) that provides information about a company’s rights offering. The form must be filed by the company issuing the rights and must include information about the terms of the offering, the company’s financial condition, and the use of proceeds from the offering. What … Read more
