Questions tagged [regulation]

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95 views

What happens after SEC revokes the registration of a stock?

Looking at United Development FUnding Income Fund IV (which was a listed REIT on Nasdaq which subsequently traded OTC): This security had its registration revoked by SEC on 2020.08.13, according to ...
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1answer
61 views

May U.S. Companies Simultaneously Issue Stock Domestically and Abroad?

According to the SEC webpage on International Investing, "Some foreign companies list their securities in multiple markets, which may include U.S. markets." The example given regards ...
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Rule 144a and Publicly Traded Companies

Suppose you exercise an employee stock option and receive 100 Class A shares. Class A shares are publicly traded on the NASDAQ. Do you have to follow Rule 144?
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129 views

How can crypto exchanges avoid sending a 1099-B?

A friend of mine is looking to trade crptocurrencies and I subsequently warned him that he'll have to keep careful track of all of his transactions throughout the year because he would have a lot of ...
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3answers
134 views

What are the consequences of heavily regulating shorting? [closed]

The GME short squeeze was very interesting for me as a newbie trader because it had unexpected effects despite not holding that position: some platforms forbid their user to buy some stocks or ...
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What are the trading restrictions, if any, when investing within my Health Savings Account (HSA)?

I wonder whether there any trading restrictions when investing within my Health Savings Account (HSA). https://www.loyola.edu/-/media/department/hr/documents/benefits/health-wellness/medical/hsa-...
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4answers
184 views

Why can't you get a loan against your IRA?

I'm trying to borrow against my IRA but for personal reasons rather than one of the 8-9 approved reasons. Does anyone know why it's prohibited? Is there any way around this?
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148 views

Portfolio margin account overnight leverage

I know for a regular margin account, the requirements of Regulation T generally limit leverage on equity to 2:1, which means SMA has to be positive for overnight. How about a portfolio margin account? ...
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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
48 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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828 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
52 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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591 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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127 views

Can brokers execute my OTC stock orders at inferior prices by "trading through"?

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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414 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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92 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 ...
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1answer
78 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
80 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
2k 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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5k 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 ...
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2answers
507 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?
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71 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 ...
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85 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 ...
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1answer
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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 ...
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1answer
92 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[ ...
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1answer
124 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 ...
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1answer
3k 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 ...
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2answers
1k 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 ...
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1answer
53 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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1answer
1k 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 ...
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1answer
44 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 ...
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1answer
189 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. ...
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1answer
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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 ...
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0answers
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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 ...
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1answer
487 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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2k 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 ...
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1answer
2k 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? ...
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0answers
28 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 ...
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1answer
105 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
869 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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371 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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86 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
187 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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55 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
503 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
161 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
89 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
54 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 ...
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1answer
141 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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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?