Author: SEC

Under the federal securities laws, any offer or sale of a security must either be registered with the SEC or meet an exemption.  Regulation A is an exemption from the registration requirements, allowing companies to offer and sell their securities without having to register the offering with the SEC.  Companies relying on a Regulation A exemption can… Continue reading REGULATION A

The Securities Act of 1933 has two basic objectives: To require that investors receive financial and other significant information concerning securities being offered for public sale; and To prohibit deceit, misrepresentations, and other fraud in the sale of securities. The SEC accomplishes these goals primarily by requiring that companies disclose important financial information through the… Continue reading REGISTRATION UNDER THE SECURITIES ACT OF 1933

A registration statement is a filing with the SEC making required disclosures in connection with the registration of a security, a securities offering or an investment company under federal securities laws.  Registration statements for securities offerings often include a prospectus, which is the disclosure document describing the offering, the securities and the company to prospective investors.  Form S-1 is the registration… Continue reading REGISTRATION STATEMENT

A registered owner or record holder holds stocks directly with the company, rather than in “street name.” Registration Statement — By law, public companies in the U.S. must disclose important financial information before they issue securities for sale to the public. This report, known as a registration statement, is filed with the SEC.

A shareholder fee that some funds charge when investors redeem (sell) mutual fund shares. Redemption fees, which must be paid to the fund, are not the same as and may be in addition to a back-end load, which is typically paid to a broker. The SEC generally limits redemption fees to 2% of the sales… Continue reading REDEMPTION FEE

Investors who are victims of securities law violations may be eligible to receive money recovered from fraudsters. Sometimes a successful SEC enforcement action results in recovered funds being distributed to victims. Processes that may help victims recover money include: fair funds and disgorgement funds; receiverships; brokerage account customer protections; corporate bankruptcy proceedings; and private class… Continue reading RECOVERING FUNDS

Rebalancing brings a portfolio back to its original asset allocation mix. This is necessary because over time, some investments will grow faster than others, and holdings may become out of alignment with investment goals.

Real return is what is earned on an investment after accounting for taxes and inflation. Real returns are lower than nominal returns, which do not subtract taxes and inflation.

Real estate investment trusts (“REITs”) allow individuals to invest in large-scale, income-producing real estate. A REIT is a company that owns and typically operates income-producing real estate or related assets. These may include office buildings, shopping malls, apartments, hotels, resorts, self-storage facilities, warehouses, and mortgages or loans. Unlike other real estate companies, a REIT does… Continue reading REAL ESTATE INVESTMENT TRUST (REIT)

The federal securities laws do not define the term “quiet period.”  However, that term is used to refer to the period of time surrounding the filing of a registration statement during which an issuer of securities must ensure that its offering-related communications comply with the federal securities laws.  This period lasts, at a minimum, from… Continue reading QUIET PERIOD