Hot answers tagged

24

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 firms employees are informed of changes to the firm's financial situation or new clients that are close to signing in town halls before they are released to the ...


6

I have worked for an alternative asset manager that had SEC personal in the office when the SEC was doing their semi-periodic audits. I'll mention they showed up at 8am and left at 5pm as if they had a clock set. This was just my experience. It seems unlikely but not out of the realm of reason that someone from the SEC would be in a US company's London ...


6

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 the company. Some shareholders like that an investor like Ackman can't buy up enough of the company to install board members and start to start unilaterally ...


6

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 gets coverage and attention. It got you to notice, didn't it? If you have a big pile of money/are an investment firm, you might potentially care about the fact ...


6

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 wanted to transfer some stock from one account to another. Same broker. They only allow one account to have margin, and I wanted to be able to sell covered calls on ...


5

No, they cannot force you to sell simply because of your status. When companies go private though, they frequently invoke "drag along" clauses in shareholder agreements which may specify that in the event of such a sale, everyone must sell.


4

There are many different kinds of SEC filings with different purposes. Broadly speaking, what they have in common is that they are the ways that companies publicly disclose information that they are legally required to disclose. The page that you listed gives brief descriptions of many types, but if you click through to the articles on individual types of ...


4

The balance sheet and income statements are located in the 10-K and 10-Q filings for all publicly traded companies. It will be Item 8.


4

First, being delisted is not the same thing as going private. If a stock is delisted from its exchange, it can still trade publicly "over the counter" or on the "pink sheets", and you do not need to be accredited to hold such shares. As TripeHound commented, "going private" normally requires buying all outstanding shares, and this can be done because a ...


4

No worries. There are checks and balances. Minority stockholders have a number of options (pun not intended) in terms of litigation. I start Go-around Corp. and make 737 landing gear. I sell you a minority stake in Go-around. And after you're onboard, I use the capital to make war on Canada geese. I cover the American east with goose traps, auto-turrets, I'...


4

Nokia is a Finnish company. You may not be able to find its quarterly report using tools intended for US stocks. You can find all relevant reporting here, on Nokia web site: https://www.nokia.com/about-us/investors/reports-filings/ In particular, as a Finnish company, the most significant reports are annual reports, not quarterly reports. You may be ...


3

See the footnotes. They sold PayPal. They removed the sales and and expenses related to PayPal from their consolidated statements. Othereise it would look like sales dropped from year x to year y.


3

In the US one has to be accredited investor to buy stock in a private company. That's not correct. The private company is only allowed to solicit investment from accredited investors. Non accredited investors are not barred from investing in companies and many many many many non-accredited folks are invested in other people's small businesses.


3

So is knowledge of unannounced products simply not considered material nonpublic information? Well "material" is relative but it certainly is nonpublic information. And trading based on that information would likely be considered illegal if it is actually material. Many companies require that employees with material non-public info get stock trades ...


3

It stands for Ambergroup. See the top of the document. They appear to use agmp as the name for fields they've defined and as part of the filename.


3

The T+3 "rule" relates only to accounting and not to trading. It does not prevent you from day trading. It simply means that the postings in you cash account will not appear until three business days after you have executed a trade. When you execute a trade and the order has been filled, you have all of the information you need to know the cash amounts ...


3

You aren't getting a straight answer because nobody knows why those regulations are the way they are. Everyone has to give this information to open the brokerage account or for any access to the US financial system whether it is with a bank account, or a brokerage account. Everyone also typically gives this information to their employer to be employed at ...


3

Aside from the other answers which address why this is an important part of free markets, capitalism and a fundamental part of stock ownership, there are other more practical implications. For one it isn't at all rare for a single investor to take a firm private, effectively buying all the stock and ceasing trading of the company, ending its publicly traded ...


3

What you seem to be asking for is a rule that says that Zuckerberg can't let other people invest in his venture unless he accepts their direction over the purpose of the venture. This is certainly one way a corporation can exist -- as an entity that advances solely the interests of its stockholders. But this is not the only purpose of a venture. Say ...


3

Re: "can I have people signup, deposit money with me, and purchase stocks through my account ... ?" Short answer: No, that wouldn't be legal. Disclaimer: IANAL. But anyway, perhaps refer to SEC.gov - Guide to Broker-Dealer Registration. Section II A defines a broker as "any person engaged in the business of effecting transactions in securities for the ...


3

Sean Edgett, as mentioned in the signature, is an attorney-in-fact. This means that ROSENBLATT DAVID S has granted Sean Edgett a power of attorney (POA). A power of attorney (POA) is a legal document giving the attorney-in-fact (Sean Edgett) some powers to act for another person (ROSENBLATT DAVID S). In this case, ROSENBLATT DAVID S has apparently given Sean ...


3

The most straightforward way I can think of to violate SEC rules with a retail brokerage account would be insider trading: trade a stock based on non-public information in breach of a fiduciary duty. For instance, if you worked for a company that you knew was about to get acquired, but that information wasn't public yet, you could buy a bunch of your ...


3

If you're a small buy-and-hold investor, you're not going to show up on the SEC's radar. What gets you on the SEC's radar is very large profitable positions. For example, you've never bought more than 5 options on a stock and suddenly you buy several hundred of them just before a news release and the stock then makes a large move in your favor after news. ...


3

Most public corporations publish the results of proxy votes in multiple formats included hard-copy and online. Look for annual/quarterly reports. The best way to find this is to search their web site for "Investor Relations" and it is likely in a downloadable PDF file. For example: Here is the page for Exxon Mobil.


2

I use 10-K and 10-Qs to understand to read the disclosed risk factors related to a business. Sometimes they are very comical. But when you see that risk factor materializing you can understand how it will effect the company. For example, one microlending company's risk factor stated that if Elizabeth Warren becomes head of the Consumer Financial Protection ...


2

i think separate accounts is the simplest way to go. if the tax breaks are significant, then the inconvenience should be worth it. you could gift or loan money back and forth. done properly, it should be technically legal (or grey enough to not cause irs trouble). specifically, they could gift you 100k$ in january and then you could gift them 110k$ in ...


2

Filter by the filings when you look at the search results. The 10-K will include the annual report, which included fiscal year-end financial statements. Quarterly reports and statements are in the 10-Q filing. The filing will include a LOT of other information, but there should be a section called "Financial Statements" or something similar that will ...


2

There's the question whether knowledge about unannounced products is actually "material" if everyone (the public) knows that something new will be released. If you work at Apple on the development of the iPhone 8, that's not material. If you worked at Apple and you knew that they stopped developing new phones, that would be very, very, very material ...


2

It almost sounds like you're trying to describe restricted shares (Rule 144 stock). If that's the case, here's a quote from the SEC's website about it. This is what your explanation seems to be covering: What Are Restricted and Control Securities? Restricted securities are securities acquired in unregistered, private sales from the issuing ...


Only top voted, non community-wiki answers of a minimum length are eligible