. How the Securities and Exchange Commission (SEC) Works What is an example of SEC? The Securities and Exchange Commission (SEC) is a regulatory body that oversees the securities industry in the United States. The SEC has a three-part mission: 1. To protect investors; 2. To maintain fair, orderly, and efficient markets; and 3. To … Read more
SEC Form 40-F is a form that must be filed with the Securities and Exchange Commission (SEC) by any foreign company that wishes to list its securities on a U.S. stock exchange. The form is similar to the Form 10-K that domestic companies must file, but includes additional information about the company’s operations and financials. … Read more
The Basel Accord is an agreement reached by central bankers in Basel, Switzerland in 1988. The accord is also known as the Basel Capital Accord, and its full name is the Basel Capital Accord of 1988. The agreement was reached in order to standardize the way that banks calculate their capital requirements. The accord was … Read more
A Schedule 13G is an SEC filing that must be submitted by any person or entity that beneficially owns more than 5% of a company’s outstanding securities, and intends to hold those securities for the long-term (i.e. for investment purposes, as opposed to short-term trading). The Schedule 13G must include information such as the filer’s … Read more
The SEC Form X-17A-5 is a filing that must be submitted by investment companies to the Securities and Exchange Commission (SEC). The form is used to provide information about the investment company’s officers, directors, and principal shareholders. The form must be filed annually. What does a broker-dealer do? A broker-dealer is a financial professional that … Read more
The SEC Form 1-A is the official form that must be filed with the Securities and Exchange Commission in order to offer securities to the public. The form is also known as the “Registration Statement” and is used to register securities with the SEC. The form must be filed prior to the offering of any … Read more
What is Anti Money Laundering (AML)? – Its History and How It Works What is difference between KYC and AML? KYC (know your customer) is the process of a business verifying the identity of its clients. AML (anti-money laundering) is the process of a business preventing the illegal conversion of property from its legitimate form … Read more
Price ceilings and their effects on economics, including implementation. How does price ceiling affect stakeholders? A price ceiling is a legal maximum price that can be charged for a good or service. Price ceilings are usually set by government agencies in order to protect consumers from unscrupulous businesses, but they can also be put in … Read more
The Rule 10b–18 definition is a set of parameters that the U.S. Securities and Exchange Commission (SEC) uses to define what constitutes legal insider trading. The rule is also known as the “safe harbor” rule, as it provides a safe harbor for companies that engage in certain activities related to the buying or selling of … Read more
“Full Disclosure” is a term used to describe the process by which companies are required to share information about their financial condition, business dealings, and other material information with the public. The Securities and Exchange Commission (SEC) requires that all publicly traded companies disclose material information that could reasonably impact the price of their securities. … Read more
