Author: SEC

Required by law, most public companies must periodically (at least every three years) provide their shareholders with an advisory vote on the compensation of the most highly compensated executives. Companies are required to disclose (usually in a proxy statement [hyperlink to defined term]) how their compensation policies and decisions have taken into account the results… Continue reading SAY-ON-PAY VOTE

Savings bonds are debt securities issued by the U.S. Department of the Treasury to help pay for the U.S. government’s borrowing needs. U.S. savings bonds are considered one of the safest investments because they are backed by the full faith and credit of the U.S. government. For more information on savings bonds, visit TreasuryDirect.gov.  

If you own or are considering purchasing a U.S. savings bond, the U.S. Department of Treasury’s Bureau of the Fiscal Service has designed a useful tool for determining the present and future value–as well as historical information, current interest rate, next accrual date, final maturity date, and year-to-date interest earned. Known as the Savings Bond Calculator,… Continue reading SAVINGS BOND CALCULATOR

Income that is not spent on consumption but is put aside.

“Saving and investing app” may refer to a variety of different mobile applications that use technology to help you save and invest. These apps are often marketed as an easy way to get started saving and investing.  Users may be able to set goals and actions that help them save and invest—for example, rounding up… Continue reading SAVING AND INVESTING APPS

The amount that investors pay when they buy (front-end load) or redeem (back-end load) shares in a mutual fund, similar to a commission. The SEC’s rules do not limit sales loads a fund may charge, but FINRA’s rules cap mutual fund sales loads at 8.5% of the purchase or sale, or at lower levels, depending… Continue reading SALES CHARGE (OR LOAD)

Rulemaking is the process that federal agencies use to make rules. Some rulemaking implements laws passed by Congress and signed by the President. Other rulemaking updates rules under existing laws or creates new rules within an agency’s existing authority that the agency believes are needed. The process is designed to give members of the public… Continue reading RULEMAKING, HOW IT WORKS

Rule 506 of Regulation D provides two distinct exemptions from registration for companies when they offer and sell securities. Companies relying on the Rule 506 exemptions can raise an unlimited amount of money. Under Rule 506(b), a “safe harbor” under Section 4(a)(2) of the Securities Act, a company can be assured it is within the Section 4(a)(2) exemption… Continue reading RULE 506 OF REGULATION D

Rule 504 of Regulation D provides an exemption from the registration requirements of the federal securities laws for some companies when they offer and sell up to $5,000,000 of their securities in any 12-month period.  Except in limited circumstances, purchasers of securities offered pursuant to Rule 504 receive “restricted” securities, meaning that the securities cannot be sold for at… Continue reading RULE 504 OF REGULATION D

An employer-sponsored Roth 401(k) plan is similar to a traditional plan with one major exception. Contributions by employees are not tax deferred but are made with after-tax dollars. Income earned on the account from interest, dividends, or capital gains, is tax-free.