Questions tagged [regulation]

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14
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5answers
4k views

Is it possible to violate SEC rules within a retail brokerage account?

I am a small buy-and-hold investor. I recently asked a question about pump and dump scams: Will I be investigated if I regularly profit from pump and dump scams? One interesting comment by user @Steve-...
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1answer
46 views

Are public companies required to disclose quarterly performance after an acquisition?

Recently, the company Fastly Inc (NYSE: FSLY) reported preliminary results for their 3rd quarter. On their official website, they made the following statement SAN FRANCISCO--(BUSINESS WIRE)-- Fastly, ...
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0answers
584 views

Will I be investigated if I regularly profit from pump and dump scams?

Suppose I regularly profit from other people's pump and dump scams (assume that this is possible). I don't organize these scams (they are illegal); I merely hop on and hop off at the right times (...
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1answer
46 views

Do futures regulations stipulate a minimum account balance?

I opened a futures trading account at a futures brokerage that requires a $100 minimum deposit. Are these minimum deposits specified by any regulator, or is it up to each broker to set a minimum ...
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0answers
15 views

Are companies listed on the TSX Venture Exchange required to publish financial statements regularly?

The TSX Venture Exchange lists many small-cap and micro-cap companies. Are all these companies required by law to regularly make their financial statements available to the public? If so, are all ...
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0answers
95 views

Do I get a second chance if I fail the SGX quiz?

To trade Specified Investment Products (SIPs) such futures, options and structured warrants, I need to pass the SGX quiz. What happens if I fail the quiz? Will I get a second chance? What is the ...
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0answers
31 views

Can brokers fill my OTC stock orders by “trading through” and executing at inferior prices?

I am aware that FINRA-registered broker-dealers have to follow FINRA Rule 5310 (Best Execution and Interpositioning). But are OTC stocks (OTCQX, OTCQB, OTC Pink) subject to the Order Protection Rule ...
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1answer
43 views

How does day trading work regarding waiting for funds to clear?

So, I understand the PDT rule, needing $25k in an account to day trade, however... If a person is day trading, don't they need to wait 3 days to use that money again? Do they just have very large ...
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0answers
15 views

Indian regulation on margin accounts

Is there any Securities and exchange board of India regulation on disallowing margin to holders of trading accounts? I see that brokers operating in India in the Indian stock market do not offer ...
0
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1answer
84 views

Reporting a forex broker to the corresponding regulator, what else should I do?

I traded forex using two different brokers in two countries. Forex.com in USA and alfaforex.ru in Russia. What I experienced both times was unexpected position sell-outs and fake quotes: position ...
1
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1answer
60 views

Which of the following satisfy the pattern day trading rule?

I have confusion about the day trading rules. From below scenario, which is pattern day trading? I bought 1 Apple share in pre-market and sell it in the after-market hours (within same day). I bought ...
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1answer
67 views

Calculate liquid net worth

I look at the definition and I understand the idea and concept of liquidity: It's how much cash you can pay and cover more or less immediately. I have x dollars in stocks and savings which can be ...
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1answer
213 views

Does PDT transfer with you when you switch brokerages?

Robinhood classified me as a Pattern Day Trader (PDT). If I switch to TD Ameritrade, will my 90 day ban follow me? Worried that if I make a trade with TD Ameritrade then I try to sell it will ...
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0answers
24 views

Easy way to check if a product has a KID and complies with PRIIP?

The Packaged Retail and Insurance-based Investment Products (PRIIP) regulations are phenomenally confusing and opaque. How can a retail Europe-based investor check whether a financial product provides ...
10
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2answers
347 views

Can a single share of stock be shorted multiple times?

Is it possible for a single share of stock to be shorted multiple times? Concrete example: Imagine we have five people with the following motivations: Person A owns a share of company ABC and wants to ...
2
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2answers
100 views

Can shares be trades outside of an exchange?

If a company's shares are listed on an exchange (NYSE or NASDAQ) is it allowed to trade them privately (i.e. one owner to another), without the trade being registered on the exchange?
0
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1answer
69 views

What can supersede/inhibit the Sarbanes-Oxley act?

After reading an interesting opinion piece, the regulatory oversight that we have come to expect in the post-Enron world (via Sarbanes-Oxley Act) seems somewhat jeopardized. Namely, the oversight on ...
0
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2answers
67 views

Invest in an US ETF or fund being a UK citizen

Is it possible to invest in a US ETF or fund being a UK citizen, without having any sort of bank or brokerage account based in the USA? I'm not talking about these ETFs / funds that hold US assets ...
0
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1answer
30 views

How market regulations in different countries affect to the investment risk [closed]

There are some countries that have less market freedom than others (see Index of economic freedom by countries. Let's take into account only developed countries (USA, EU, UK, Australia etc.). Do ...
2
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1answer
89 views

Why don't American Mutual funds offer SWP's?

Indian Mutual funds have a feature called SWP [Systematic withdrawal plan]. It's a feature that enables an investor to automatically withdraw the appreciated amount or a specific amount periodically[ ...
2
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1answer
120 views

Why are stock options named as they are?

Why are ISO stock options termed "statutory"? Because they are defined by some sort of statute? If so, then what is the statute? Similarly, why are ISOs termed "incentive" stock options whereas NQOs ...
2
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1answer
1k views

Buying and Selling options for the same stock multiple times in a day?

Is it normal that traders buy and sell options of the same stock on the same day multiple times? For example, in an event of a positive earnings release, the CALL options were bought and then sold it ...
2
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2answers
702 views

Why are some money market mutual funds not margin-able for 30 days?

My broker has a money market mutual fund where I can park the money when not invested, but that position does not give margin buying power for next 30 days. Per article part shown below. Example of ...
2
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1answer
50 views

Data security of financial service companies

I use non bank financial service companies such as Wealthfront and Robinhood. It's incredibly important that they manage data (such as account balance) correctly. I'd be inclined to trust major banks ...
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0answers
24 views

What are the limits for a corporation investing under US Regulation Crowdfunding rules?

When investing through US Reg CF, there are certain limits on the amount that can be invested. These limits seem based on Net Worth and Income. Examples are listed here: https://www.sec.gov/info/...
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1answer
660 views

How to find equivalent US or Worldwide ETFs that are compliant with European PRIIPS regulations?

I used to invest in the following hyper-diversified portfolio : +--------+--------------------------------------------------+-------------+ | ticker | Exchange-traded Fund ...
0
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1answer
41 views

How can one transfer registration of stock in a private transaction?

A friend wants to sell me IBM shares at a fixed price X (and no more, because of tax reasons). Since X is slightly lower than the market price, I'm happy to get the benefit of the bargain. The friend ...
4
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1answer
177 views

Regulation for ETFs in the UK after the Brexit

Currently the UK is in the EU, that means that the financial products sold in the UK are under the EU regulation (UCITS). After the UK leaves the EU, this regulation will no longer be applicable. ...
4
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1answer
80 views

In India, how can I verify mutual fund holdings, to prevent frauds?

Recently in India we have found out that a lot of big financial institutions have been cooking their books. And both the auditors and regulators have failed miserably and can not be trusted to do ...
2
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0answers
45 views

Do banks need a foreign branch to access a derivatives market (e.g.) London

I would be very interested to know whether banks (e.g. Santander, Deutsche Bank, etc.) need a foreign branch in a country (e.g. UK - London) to access the derivatives market in this country. Would ...
4
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1answer
321 views

Is the Thrift Savings Plan a 401k plan, a 403b plan, a 457 plan, or none of the above?

Is the Thrift Savings Plan a 401k plan, a 403b plan, a 457 plan, or none of the above? If it is none of the above, then where are the rules and regulations of the plan defined if not in the U.S. Code?
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3answers
1k views

How to continue using the online banking feature of GnuCash (AqBanking) with PSD2 in effect?

I'm running GnuCash 2.6.19 (with AqBanking 5.7.8.0) on Ubuntu 18.04.3 LTS. Ever since the European Commission's Revised Directive on Payment Services (PSD2) came into effect online banking with the ...
2
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1answer
954 views

Can you ask a bank to delete all your personal info they might still have from any closed accounts?

I have an account with a bank that I closed many years ago. I'm not sure if they still have my personal information on file or not, but is there a way to request that they purge ALL my information? ...
2
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0answers
25 views

Applicabilty of COBS to PRIIPs

Under FSMA 2000 and the subsequent amendments, the FCA is empowered in the UK to develop rules and guidance for authorised firms to adhere to. These are generally captured in the FCA Handbook, itself ...
3
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1answer
92 views

How is compliance with the Order Protection Rule (of Reg NMS) guaranteed in the face of latency?

From Investopedia: The Order Protection Rule also established the National Best Bid and Offer (NBBO) requirement that mandates brokers to route orders to venues that offer the best displayed price. ...
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1answer
582 views

Is there any risk to giving a UK bank an SSN, and why do they need it?

A friend showed me a letter from The Co-operative Bank, a UK bank with which they have an account. This letter requests their US Social Security Number (SSN): We've written to you requesting [this] ...
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1answer
233 views

What's the equivalent of the U.S. Securities and Exchange Commission in the Netherlands?

I'm looking for 10-K financial statements and I can't find the SEC.gov equivalent in the Netherlands.
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1answer
79 views

How best to comply with Regulation D of the Securities Act?

I am under the impression that there are some restrictions on raising money from outside investors for an investment fund. In particular Regulation D of the Securities Act of 1933 provides a few “...
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3answers
173 views

How do stock brokers manage to get permission from the SEC to have extended hours trading?

Robinhood managed to get 9-5PM EST trading, while Webull managed to get 5:00AM-8:00PM EST, which is much wider than Robinhood's. I wonder how they get permission and what is the limit, or it can be 24/...
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1answer
51 views

How is stockholder information shared?

Given that I received in the past invitations to annual stockholder meetings I assume my broker is sharing the required information (name and address) with the public company. I have the following ...
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5answers
475 views

Why is one person allowed to own a majority of voting rights in a publicly traded company?

I heard on Marketplace tonight that Mark Zuckerberg owns 58% of the voting rights in Facebook (not a majority of the shares, but he owns many Class B shares, which have 10 votes apiece compared to 1 ...
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3answers
151 views

Compliant investing

After saving for a couple of years, about half a year's salary has accumulated in my savings account and I now want to start investing long term in index funds, however if I open a securities account ...
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1answer
83 views

Pre-Authorized Direct Debit through online forms

This might be a cross-over between stackoverflow and money.stackexchange but I am wondering about the rules and regs of setting up a Pre-Authorized Direct Debit (PAD) through an online form. Say I ...
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1answer
51 views

Is there reporting for commodities and forex trades?

I was wondering why stock trades are required to be reported to the exchange or trade reporting facility, but why other asset types like commodities, forex etc. don't have to be reported? I couldn't ...
3
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1answer
124 views

How does a private entity FINRA have authority to impose fines

FINRA is a private entity per https://en.wikipedia.org/wiki/Financial_Industry_Regulatory_Authority and per http://www.finra.org/industry/disciplinary-actions and also otherwise its revenue comes from ...
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0answers
32 views

Are management teams in Canada required to report their ownership in a public company?

Are management teams of companies listed on Canadian stock exchanges required to report their shares in the company? Are they also required to report if they purchase shares on the market?
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1answer
1k views

How does a settlement period work if someone is a day trader?

I am trying to get into day trading stocks, however, I was wondering how this would work with settlement periods. According to this question on StackExchange, a settlement period is when both parties ...
2
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1answer
282 views

Insurance Producers and Church Tithe

Getting ready to sit for my examinations and these questions popped into my head. Curious about the nuances of illegal inducement in these circumstances. I know there are issues with gifts greater ...
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2answers
110 views

Does regulation limit on number of savings account transactions include transfers to accounts of same depositor at different bank?

The text of the restriction on withdrawals from savings accounts, found in 204.2(d)(2): The term “savings deposit” also means: A deposit or account, such as an account commonly known as a passbook ...
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2answers
1k views

Is savings account limit on number of transactions both per calendar month and per bill cycle?

The Federal Reserve's "regulation D" places a limit of six withdrawals per month from a savings account: allow no more than six transfers or withdrawals per calendar month or statement cycle of at ...