Types of Price Ceilings in Economics A price ceiling is a government-imposed limit on the maximum price that can be charged for a particular good or service. It is a form of price control that aims to protect consumers by keeping prices affordable. There are two main types of price … …
Overview of the Securities Exchange Act of 1934 The Securities Exchange Act of 1934 is a landmark piece of legislation that was enacted in response to the stock market crash of 1929 and the subsequent Great Depression. It was designed to regulate the securities industry and restore investor confidence in … …
Proxy Statement: Definition and Contents A proxy statement is a document that is filed with the Securities and Exchange Commission (SEC) by a publicly traded company. It is sent to shareholders before the annual meeting to provide them with important information about the company and the matters to be voted … …
What is the Plunge Protection Team? The team was established in 1988 after the stock market crash of 1987, which saw a significant drop in stock prices and raised concerns about the stability of the financial system. The Plunge Protection Team was created to prevent similar crashes and to maintain … …
Options Clearing Corporation: OCC Meaning, Overview, History The Options Clearing Corporation (OCC) is a financial institution that plays a crucial role in the options market. It acts as a central counterparty for all options trades, ensuring the smooth functioning and stability of the market. Overview of the Options Clearing Corporation … …
What is the Office of Thrift Supervision? The Office of Thrift Supervision (OTS) is a regulatory agency that oversees and regulates federal savings associations and their holding companies. It is responsible for ensuring the safety and soundness of these institutions and protecting the interests of depositors and consumers. OTS was … …
Types of Non-Issuer Transactions Non-issuer transactions refer to the buying and selling of securities between investors without the involvement of the issuer. These transactions can take various forms, depending on the nature of the securities and the parties involved. Here are some common types of non-issuer transactions: 1. Secondary Market … …
What is KYC? KYC, or Know Your Client, is a compliance process that financial institutions and other businesses must follow to verify the identity of their customers. It is a crucial step in preventing money laundering, fraud, and other financial crimes. By implementing KYC procedures, businesses can establish a level … …
What is the Howey Test? The Howey Test is a legal test used by the United States Securities and Exchange Commission (SEC) to determine whether a particular transaction qualifies as an investment contract and therefore falls under the definition of a security. The test takes its name from the landmark … …
What is a Compliance Officer? A compliance officer is a professional who ensures that an organization or company is operating within the legal and regulatory framework. They are responsible for developing and implementing policies and procedures to ensure compliance with laws, regulations, and industry standards. Definition, Responsibilities, and Importance Compliance … …
What is Churning in Finance? Churning in finance refers to a fraudulent practice where a broker excessively trades securities in a customer’s account to generate commissions for themselves. This unethical behavior is illegal and violates securities laws. How does Churning work? Churning typically occurs when a broker has control over … …
An Example of an Appellate Court Case In Smith v. Johnson, the plaintiff, Mr. Smith, filed a lawsuit against the defendant, Mr. Johnson, alleging negligence. The trial court ruled in favor of Mr. Johnson, finding that he was not negligent in the accident that caused Mr. Smith’s injuries. Dissatisfied with … …
What is Anti Money Laundering (AML)? Anti Money Laundering (AML) refers to a set of laws, regulations, and procedures designed to prevent the illegal generation of income through criminal activities and the subsequent disguising of the origins of that income. It is a crucial part of the global effort to … …
2. 30-Day Yield Definition The 30-day yield is a financial metric used to measure the annualized yield of an investment over a 30-day period. It is commonly used for money market funds and other short-term investments. The yield is expressed as a percentage and represents the income generated by the … …
Overview What is the 2000 Investor Limit? The 2000 Investor Limit is a regulation set by the Securities and Exchange Commission (SEC) that restricts the number of investors a company can have before it is required to register with the SEC. This limit is designed to protect investors and ensure … …