GlossaryGuide

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

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.