Boiler room schemes are large-scale operations designed to lure in as many investors to an investment scam as possible, often using high-pressure sales tactics. Boiler room scheme operators may cold call investors or solicit investors through emails, text messages, social media, and other means. Beware of boiler room scheme tactics, including: Aggressive Sales Tactics or Threats. … Continue reading BOILER ROOM SCHEMES
BOARD OF DIRECTORS
A group of people elected by shareholders to oversee the management of a corporation.
BLUE SKY LAWS
In addition to the federal securities laws, every state has its own set of securities laws—commonly referred to as “Blue Sky Laws”—that are designed to protect investors against fraudulent sales practices and activities. While these laws do vary from state to state, most state laws typically require companies making offerings of securities to register their… Continue reading BLUE SKY LAWS
BLANK CHECK COMPANY
A blank check company is a development stage company that has no specific business plan or purpose or has indicated its business plan is to engage in a merger or acquisition with an unidentified company or companies, other entity, or person. These companies typically involve speculative investments and often fall within the SEC’s definition of… Continue reading BLANK CHECK COMPANY
BINARY OPTIONS
A binary option is a type of options contract in which the payout depends entirely on the outcome of a yes/no proposition and typically relates to whether the price of a particular asset will rise above or fall below a specified amount. Once the option is acquired, there is no further decision for the holder… Continue reading BINARY OPTIONS
BID PRICE
The term “bid” refers to the highest price a buyer will pay to buy a specified number of shares of a stock at any given time. The term ask refers to the lowest price at which a seller will sell the stock. The bid price will almost always be lower than the ask or “offer,” price. The… Continue reading BID PRICE
BENEFICIAL OWNER
A beneficial owner holds stocks indirectly, for example, through a bank or broker-dealer. Beneficial owners are sometimes said to be holding shares in “street name.”
BEAR MARKET
A time when stock prices are declining and market sentiment is pessimistic. Generally, a bear market occurs when a broad market index falls by 20% or more over at least a two-month period.
BASIS POINT
One one-hundredth (.01) of a percentage point. For example, eight percent is equal to 800 basis points.
BANKRUPTCY FOR A PUBLIC COMPANY
A company may decide to declare bankruptcy when it suffers from crippling debt. Federal bankruptcy laws govern how the assets and business of a company will be used to clear its debts. There are two types of bankruptcy available to companies (Chapter 7 and Chapter 11), but regardless of the type of bankruptcy a company… Continue reading BANKRUPTCY FOR A PUBLIC COMPANY