GlossaryGuide

Investors sometimes complain to the SEC staff about late payments of interest owed to them on their bonds. The SEC, however, does not generally regulate this issue. Instead, the process for paying bondholders ordinarily involves banking transactions that are subject to the supervision of state and federal banking authorities. Here’s how the process should work: the… Continue reading LATE PAYMENT OF INTEREST ON BONDS

Terms used to describe a company’s size and market value (market capitalization).

The entity obligated to pay principal and interest on a bond.

Bonds that are believed to have a lower risk of default and receive higher ratings by the credit rating agencies, namely bonds rated Baa (by Moody’s) or BBB (by S&P and Fitch) or above. These bonds tend to be issued at lower yields than less creditworthy bonds.

A company that issues and invests in securities. The three types of investment companies are mutual funds, closed-end funds, and unit investment trusts.

The Investment Adviser Registration Depository (IARD) functions as a one-stop electronic filing system for investment advisers.  All SEC-registered investment advisers and investment advisers applying to register with the SEC must file Form ADV and amendments to Form ADV electronically through IARD.  Most states also require investment advisers registered in their states to submit filings electronically through IARD, although… Continue reading INVESTMENT ADVISER REGISTRATION DEPOSITORY (IARD)

The Investment Adviser Public Disclosure (IAPD) database contains registration documents filed by investment adviser firms that register electronically using the Investment Adviser Registration Depository (IARD). IAPD also contains registration information filed with the states by individuals acting as investment adviser representatives, if they are required to register. Not all states require investment adviser representatives to register. Through IAPD, you can:… Continue reading INVESTMENT ADVISER PUBLIC DISCLOSURE (IAPD)

An investment adviser is a person or firm that is engaged in the business of providing investment advice to others or issuing reports or analyses regarding securities, for compensation. Investment advisers may include money managers, investment consultants, financial planners, general partners of hedge funds, and others who are compensated for providing advice about securities. Advice… Continue reading INVESTMENT ADVISER

The SEC’s Division of Enforcement conducts investigations into potential violations of the federal securities laws. Common violations include misrepresenting important information about potential investments, manipulating the market prices of securities, stealing customers’ funds or securities, insider trading, and selling unregistered securities. Although each SEC investigation is unique, here are a few common characteristics: SEC investigations… Continue reading INVESTIGATIONS

To engage in any activity in which money is put at risk for the purpose of making a profit.