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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 ...
Brythan's user avatar
  • 21k
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 ...
MD-Tech's user avatar
  • 9,072
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 ...
nanoman's user avatar
  • 30.2k
11 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 ...
Glorfindel's user avatar
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 ...
Ben Voigt's user avatar
  • 6,788
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 ...
Grade 'Eh' Bacon's user avatar
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. ...
UTF-8's user avatar
  • 922
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 ...
CQM's user avatar
  • 20.2k
7 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 ...
Lou's user avatar
  • 511
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 ...
Chris W. Rea's user avatar
  • 31.7k
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 ...
csingley's user avatar
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 ...
JTP - Apologise to Monica's user avatar
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 ...
Dennis's user avatar
  • 69
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 ...
Magua's user avatar
  • 5,097
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 ...
quid's user avatar
  • 49k
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 ...
BrianH's user avatar
  • 11.7k
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 ...
Justin Cave's user avatar
  • 27.8k
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. (...
RonJohn's user avatar
  • 50.7k
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 ...
LoztInSpace's user avatar
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 § ...
TainToTain's user avatar
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 ...
Pete B.'s user avatar
  • 77.2k
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 ...
Charles E. Grant's user avatar
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 ...
Bob Baerker's user avatar
  • 76.8k
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 ...
mhoran_psprep's user avatar
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. ...
Dilip Sarwate's user avatar
5 votes

Can shares be trades outside of an exchange?

Yes shares can be traded outside of an exchange, but a transfer agent is still involved. As stock shares represent various rights and privileges, like voting rights and dividends, someone needs to ...
Morrison Chang's user avatar
5 votes
Accepted

Calculate liquid net worth

The "net" in "net worth" is your worth after subtracting off all debt. So, no, you can't count available unused credit in your net worth — liquid or otherwise.
Chris W. Rea's user avatar
  • 31.7k
5 votes

What specific services, if any, is a bank required to offer to call themselves a bank in the United States?

Banking regulations in the US are convoluted and spread across Federal/State governments/laws and various different Federal and State regulators. So what specific regulations apply to your specific ...
littleadv's user avatar
  • 178k
4 votes

Why do some options trade in 5 cent increments?

You are correct that the Tick Size Pilot Program is the cause of the changes you are seeing. FINRA has an explanation of the program and a important date schedule and likely of use to you a ticker ...
rhaskett's user avatar
  • 6,608
4 votes

Stock sale by person living abroad

What she is being told is complete baloney. See this question here for example, and this Motley Fool article republished on the Nasdaq site. In order to trade U.S. stocks, the easiest thing to do ...
Peter K.'s user avatar
  • 3,963

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