Category: Investor Definitions

A pyramid scheme is an investment fraud in which new participants’ fees are typically used to pay money to existing participants for recruiting new members. Pyramid scheme organizers may pitch the scheme as a business opportunity such as a multi-level marketing (MLM) program. Fraudsters frequently use social media, Internet advertising, company websites, group presentations, conference… Continue reading PYRAMID SCHEMES

The amount of goods and services that can be purchased by a given unit of currency, taking into account the effect of inflation.

A shareholder fee that some funds charge when investors buy mutual fund shares. This is not the same as, and may be in addition to, a front-end load.

In a pump and dump scheme, fraudsters typically spread false or misleading information to create a buying frenzy that will “pump” up the price of a stock and then “dump” shares of the stock by selling their own shares at the inflated price. Once the fraudsters dump their shares and stop hyping the stock, the… Continue reading PUMP AND DUMP SCHEMES

How To Access Information Or Help If you have questions and inquiries relating to the SEC, to federal securities laws or investments, your inquiry should be submitted via this Questions and Feedback form. Click here for Fast Answers. Information about contacting the SEC can be found here. For any complaint relating to your investment or investment professional, you can… Continue reading PUBLIC DOCUMENTS

The Public Company Accounting Oversight Board (also known as the PCAOB) is a private-sector, nonprofit corporation created by the Sarbanes-Oxley Act of 2002 to oversee accounting professionals who provide independent audit reports for publicly traded companies. The PCAOB’s responsibilities include: registering public accounting firms; establishing audit, quality control, ethics, independence, and other standards relating to audits of… Continue reading PUBLIC COMPANY ACCOUNTING OVERSIGHT BOARD (PCAOB)

A company that offers its securities through an offering and now has those securities traded on the open market.

A way for shareholders to vote for corporate directors and on other matters affecting the company without having to personally attend the meeting.

A company is required to file its proxy statements with the SEC no later than the date proxy materials are first sent or given to shareholders. You can see this filing by using the SEC’s database, known as EDGAR.  Enter the company’s name here and select the appropriate company to view its SEC filings. To view the most recent proxy… Continue reading PROXY STATEMENTS: HOW TO FIND

A document sent to shareholders letting them know when and where a shareholders’ meeting is taking place and detailing the matters to be voted upon at the meeting.  You can attend the meeting and vote in person or cast a proxy vote.  Learn more.