45 votes
Accepted

My credit card company is asking for my current income citing "Federal Regulations"

I received exactly the same letter (in email form) from Discover Card about 9 months ago, so I immediately called them, thinking that someone was doing some very convincing phishing -- the email had ...
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  • 5,997
34 votes

Is this investment opportunity problematic?

It would have to be made as a "gift", and then the return would be a "gift" back to you, because you're not allowed to use a loan for a down payment. This is not to evade taxes. This is to evade a ...
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  • 20.8k
24 votes

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

As with all crimes there is a huge difference between violating the law and being caught. Probably the most problematic and easiest SEC rule for a small investor to break is insider trading. In most ...
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  • 8,492
21 votes

My credit card company is asking for my current income citing "Federal Regulations"

I recommend you take a look at the Card Act of 2009's amended "ability to pay" regulations: http://files.consumerfinance.gov/f/201304_cfpb_credit-card-ability-to-pay-final-rule.pdf There's a lot of ...
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17 votes
Accepted

Is there a rule that a merchant must identify themself when making a charge

Here's an excerpt from VISA's Card Acceptance Guidelines for Visa Merchants (PDF) Merchant Name The merchant name is the single most important factor in cardholder recognition of ...
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  • 369
15 votes
Accepted

Can a single share of stock be shorted multiple times?

Yes, a share can be lent and shorted more than once: If a short-seller borrows shares from one brokerage and sells to another brokerage, the second brokerage could then lend those shares to another ...
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  • 28.6k
9 votes
Accepted

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

The Dutch equivalent of the Securities & Exchange Commission is the so-called Autoriteit Financiële Markten. You can find the 'jaarverslagen', the Dutch equivalent of 10-K financial reports, on ...
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9 votes
Accepted

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

It is none of those. It is defined in the US Code, but not the Internal Revenue portion of the code. The official explanation: The TSP is established under the Federal Employees' Retirement ...
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  • 6,209
8 votes

Does an individual share of a stock have some kind of unique identifier?

There is no unique identifier that exists to identify specific shares of a stock. Just like money in the bank, there is no real reason to identify which exact dollar bills belong to me or you, so long ...
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  • 1,866
8 votes
Accepted

Can a company control its stock through contracts with stockholders?

Your first scenario, involving shareholders in a private corp being limited by a contractual agreement, is common in practice. Frequent clauses include methods of valuing the shares if someone wants ...
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8 votes
Accepted

Regulation for ETFs in the UK after the Brexit

That's about an EU directive. The way EU directives work is that each member state is obligated to make laws that comply with it. But these aren't EU laws. They are laws of each individual country. ...
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  • 892
7 votes

Is income from crypto-currencies taxed?

Mining is income at the value at time of earning, I would use an index like XBX to determine price. Asset appreciation is capital gains. These aspects of crypto-assets are not a gray area in the US ...
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  • 20.1k
6 votes

Is this investment opportunity problematic?

Your Spidey senses are good. A good friend would not put you in such a position. It's simple, to skirt some issue (we'll get to that in a second) you are being asked to lie. All for a 15% return on ...
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6 votes

Is this investment opportunity problematic?

If you can separate the following two points, and live with them. I think you are good to go ahead. Otherwise I would seriously recommend you to reconsider. Your friend just asked you to give you ...
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  • 69
6 votes
Accepted

What exactly happens during a settlement period?

Securities clearing and settlement is a complex topic - you can start by browsing relevant Wikipedia articles, and (given sufficient quantities of masochism and strong coffee) progress to entire ...
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6 votes
Accepted

How can a broker support mass copytrading with a $100 investment when there is a larger account minimum for day-trading?

The service you are asking about does not let you buy stock directly. Rather than brokering or dealing in actual equities, they deal in financial betting instruments known as "contracts for ...
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  • 31.4k
6 votes
Accepted

In the USA, is it illegal for a group of people to agree to purchase or sell a particular stock?

Yes, this is prohibited by the Securities Exchange Act of 1934, Section 9(a)(2). SEC. 9. (a) It shall be unlawful for any person, directly or indirectly, by the use of the mails or ...
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  • 5,067
6 votes

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

The flip side of this narrative is that Zuckerberg's massive undiversified exposure to Facebook equity keeps Facebook protected from activist investors seeking to potentially obstruct the mission of ...
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  • 48.5k
6 votes

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

Well, technically the original quote is "it's not about the money, it's about sending a message", but still. That's pretty much the long and the short of it - having a vote that is doomed to fail ...
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  • 11.6k
6 votes
Accepted

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

No. Even if there was a data protection law like the European GDPR, that's not going to require banks to erase information about accounts you've had in the past. Banks are generally going to be ...
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  • 20.4k
6 votes

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

A wash trade - where a single person takes both sides of a trade - is against the rules, as they can be used to manipulate the market. I ran into this (I wasn't trying to manipulate anything). I ...
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  • 501
6 votes

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

Why can't you get a loan against your IRA? Because the law says so, that's why. Government gives you the benefit of deferring taxes, and the government takes away the ability to borrow from it. (...
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  • 48.7k
6 votes

How should people trust an online store?

Almost always the online stores use a payment gateway such as PayPal, Stripe, or one of many others. These are widely trusted and due to the way they work the store never even gets your card details ...
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5 votes

Is this investment opportunity problematic?

Adding to what others have said, if the mortgage for the new house is backed by the federal government (e.g., through FHA or is to be sold to Fannie Mae/Freddie Mac) you would be violating 18 USC § ...
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5 votes

Is the financial advice my elderly relative received legal/ethical?

I can't speak about the UK, but here in the US, 1% is on the cheap side for professional management. For example Fidelity will watch your portfolio for that very amount. I doubt you could claim that ...
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  • 74.9k
5 votes

Licensed and registered in Vanuatu, but not searchable

To answer your direct question: if you look at this page, the link "Licensees List update February 2018" returns a PDF document which does list TMI Holding Limited. Why it's not returned from the ...
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5 votes
Accepted

What recourse does FINRA provide?

It depends on the nature of the complaint as well as how the other party decides to respond. Here are my two experiences with this and they are not a representation of all that FINRA does in such ...
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  • 73.7k
5 votes

How does a private entity FINRA have authority to impose fines

Any private organization can set up rules and regulations that can lead to the authority to fine a member. If somebody doesn't want to abide by those rules they can leave or not join. They are what ...
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5 votes
Accepted

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

Several American fund houses (perhaps even all fund houses) do offer systematic (often called Automated) Withdrawal Plans (as well as systematic or Automated Investment Plans) for their mutual funds. ...
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