Non-Issuer Transaction: The Types And Benefits

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 …

Categories SEC

Know Your Client (KYC) Compliance Requirements: What It Means

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 …

Categories SEC

Howey Test Definition: Its Implications For Cryptocurrency

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 …

Categories SEC

Compliance Officer: Definition, Job Duties, and How to Become One

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 …

Categories SEC

Churning Definition and Types in Finance

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 …

Categories SEC

Appellate Courts: Their Work, Functions, And An Example

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 …

Categories SEC

Anti Money Laundering (AML) Definition, History and How It Works

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 …

Categories SEC

2000 Investor Limit Explained: How It Works and Example

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 …

Categories SEC