Category: Investor Definitions

In finance, risk refers to the degree of uncertainty about the rate of return on an asset and the potential harm that could arise when financial returns are not what the investor expected. In general, as investment risks rise, investors seek higher returns to compensate them for taking on such risks.

When a company completes a reverse stock split, each outstanding share of the company is converted into a fraction of a share.  For example, if a company declares a one for ten reverse stock split, every ten shares that you own will be converted into a single share.  If you owned 10,000 shares of the… Continue reading REVERSE STOCK SPLITS

A municipal bond not backed by the government’s taxing power but by revenues from a specific project or source, such as highway tolls or lease fees.

The total amount of money, or gross income, generated by a company from selling its goods and services. A simple way to think about revenue is it’s the price of a widget multiplied by the number of widgets sold.

Restricted securities are securities acquired in an unregistered, private sale from the issuing company or from an affiliate of the issuer. They typically bear a “restrictive” legend clearly stating that you may not resell them in the public marketplace unless the sale is exempt from the SEC’s registration requirements. Rule 144 provides the most commonly used… Continue reading RESTRICTED SECURITIES

Form CRS is a client or customer relationship summary. Advisers and brokers are required to deliver a relationship summary to you beginning in summer 2020. The relationship summary contains important information about the adviser or broker. Choosing or continuing to work with a financial professional is an important decision. Advisers and brokers offer different types… Continue reading RELATIONSHIP SUMMARY

Under the federal securities laws, any offer or sale of a security must either be registered with the SEC or meet an exemption. Regulation D under the Securities Act provides a number of exemptions from the registration requirements, allowing some companies to offer and sell their securities without having to register the offering with the SEC. For… Continue reading REGULATION D OFFERINGS

Crowdfunding refers to a financing method in which money is raised through soliciting relatively small individual investments or contributions from a large number of people.    If a company would like to offer and sell securities through crowdfunding, they must comply with the federal securities laws.  Under the federal securities laws, any offer or sale of… Continue reading REGULATION CROWDFUNDING

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