An abandonment option is a clause in a contract that permits either party to leave the contract before obligations have been fulfilled. An abandonment option gives either party participating in a contract the right to leave without having to fulfill obligations.
In the strictest terms, abeyance means temporary inactivity.In the finance world, the term generally refers to unknown ownership.
Accord and satisfaction is a legal term that denotes accepting compensation in lieu of some contractual obligation from another party. An accord is an agreement with conditions.
The American Rule, in law, is a rule by which each party pays its legal fees resulting from litigation. This contrasts with the English Rule, which is the global norm, where the losing party pays the legal fees of the winning party. For example, assume the plaintiff (the party suing that claims to have been wronged by the defendant's actions) files a lawsuit against a defendant and hires an attorney on a contingent fee basis (whereby the attorney doesn't charge fees but gets a percentage of the settlement if the suit is victorious).
An anti-takeover statute is a law designed to deter companies from launching hostile takeovers of other companies. Anti-takeover statutes exist in some places in order to protect the autonomy and interests of companies incorporated in those states.
Arbitration is a process in which impartial parties (arbitrators) help disagreeing parties resolve a dispute.Contracts, particularly financial ones, with disputes often go to arbitration.
A bailee is a person who has been entrusted with custody of a piece of property.A bailee does not have ownership of the property.
Bailee's customers insurance covers any damage or destruction that a bailee might do to a bailor's property. Bailment is a transfer of custody of property rather than a transfer of ownership of property.
Bailment is a transfer of custody of a piece of property rather than a transfer of ownership of a piece of property. For example, let's say John Doe owns a big piece of farmland on the eastern shore of Maryland.
Bait and switch is a sales tactic that tricks consumers into buying something other than an advertised item. John Doe sees an ad in the paper for $1 orange juice at a local retailer.
A bait record is a fake file on a computer that is used to see whether anyone is improperly accessing data. Let's assume Company XYZ's magazine covers keep leaking to the competition before they are published, causing competitors to scoop them on several stories.
A bank holiday is a day on which a bank or banking system is closed. In the United States, banks and financial markets generally cannot be closed for more than four calendar days in a row, which puts some limits on the timing and quantity of bank holidays.
Best efforts is a legal agreement between a securities underwriter (usually an investment bank) and a securities issuer, whereby the underwriter agrees to do the best it can to sell as many of the issuer’s securities as possible to the public. A best efforts agreement does not guarantee that all of the securities in the issue must be sold.An issuer and underwriter agree upon a minimum level of sales and once the minimum has been reached, the underwriter is not responsible for any unsold securities. Let’s assume Company XYZ plans to go public and it hires an investment bank to become their underwriter and arrange the offering.
Blue sky laws require the registration of brokers, brokerage firms and investment professionals in order to provide transparency of financial offerings and protect investors from investment fraud.Each state has its own blue sky law.
Book-entry securities are securities issued in electronic form rather than in paper form. The commercial book-entry system is a system whereby the investor's ownership of the security is reflected only in the investor's account records at his or her financial institution, brokerage firm or dealer.
A call report is a quarterly report that banks and all regulated financial institutions must file with the Federal Financial Institutions Examination Council (FFIEC). The formal name of the call report is the Consolidated Reports of Condition and Income.
Designed to facilitate the sharing of stolen credit card information, a carding forum is an illegal website where fraudsters also share info, tips and techniques about obtaining credit card information as well as how to use the illicit information effectively.A card holder's complete profile, called “fullz” in slang, provides the criminal with all the information they would need to impersonate the legitimate cardholder online or in person.
Chapter 10 (formally referred to as Chapter X) is a former portion of the bankruptcy code that dictated bankruptcy processes and procedures for companies and individuals. Chapter X was originally part of the Bankruptcy Act of 1898 and the subsequent Chandler Act of 1938.
Class action is a type of civil lawsuit brought by a group of people who are "similarly situated" -- that is, they have been harmed in a similar way.In the business world, this group is most often shareholders, customers or employees.
Consolidated Reports of Condition are reports that are filed quarterly by banks and all regulated financial institutions with the Federal Financial Institutions Examination Council (FFIEC) Consolidated Reports of Condition are commonly refered to as a call report.They are not the same as the Uniform Bank Performance Report, which is often filed in conjunction with the Consolidated Reports of Condition.
Created by President Obama’s Administration in 2010, the Consumer Financial Protection Bureau (CFPB) serves as a federal watchdog over the consumer financial industry.Responsible for regulating financial services companies in the credit card and mortgage industry as well as other financial services products, the CFPB guides policy and enforcement in order to protect consumers from fraud and abuse.
The Credit Card Accountability, Responsibility, and Disclosure Act is better known as the Credit CARD Act.The law's main purpose is to prevent certain business practices in the credit card industry that were considered unfair or even deceptive to consumers. The act was signed into law in May 2009 and took effect in phases.
In finance, a daisy chain is an investment scam whereby a group of fraudulent investors inflate the price of a security and then sell it at a profit. In a daisy chain scenario, an investor or group of investors holding a long position in a low-price, small-cap stock unfoundedly publicize the stock as a promising opportunity.
A date certain is a legal term identifying a date on which an action or process must occur or complete. For example, let's say that John Doe rents a house from Jane Smith.
A daylight overdraft occurs when a bank transfers out more in a day than it has in its reserves. Let's say Bank XYZ has assets of $100 million.
Demonetization is the act of removing a currency from use as legal tender. Demonetization occurs when a governing body cancels the legal tender status of a currency unit in circulation.
A disclosure statement is an official document that outlines the terms, conditions, risks and rules of a financial transaction, such as a loan or an investment. In the case of a loan, the disclosure statement describes the terms of the loan, such as the interest rate, the amount borrowed, the repayment schedule, fees, disbursement conditions, collateral requirements, insurance requirements, prepayment rights (or penalties), and any other expectations of the lender and any additional obligations of the borrower.
Duress is pressure that one person or entity puts on another person to do something that he or she would normally not do. Let's say Artie owns a restaurant called Vesuvio.
The Equal Credit Opportunity Act (ECOA) is legislation designed to ensure that all qualified people have access to credit.It prevents lenders from rejecting credit applicants based on race, gender, marital status, age, religion, or national origin and requires lenders to consider public assistance in the same light as other forms of income.
The Federal Reserve System (FRS) is the U.S.'s central bank.The Federal Reserve manages the economy's money supply, regulates the banking industry, acts as a clearinghouse for checks and other payments conducted through the banking system, operates the U.S.
The Financial Industry Regulatory Authority (FINRA) is an independent non-profit corporation that regulates the actions of securities firms in the United States. In order to deal in securities in the United States, firms are required to become members of FINRA, unless they are regulated by another self-regulatory organization (SRO). This self-regulatory body helps to protect investors and preserve market integrity by establishing, overseeing, and enforcing rules that govern brokers and dealers.
Also called wage execution, a garnishment is a process under which money owed or paid to a borrower is given to a creditor instead. Let's say John Doe has stopped paying child support to his ex-wife.
The Glass Steagall Act was passed by Congress in 1933.It prohibited commercial banks from conducting brokerage or investment banking activities.
Global Investment Performance Standards (GIPS) are ethical standards for asset-management companies.They were established by the Association for Investment Management Research.
Founded in 1921, the Government Accounting Office (GAO) is an independent, nonpartisan agency that studies how the federal government spends taxpayer money. The head of the GAO is the Comptroller General of the United States.
A grandfather clause is a clause that is included as part of a new law that exempts specific parties from the law due to practices that were in place prior to the law's implementation. For example, consider a law that is passed stating that all buildings with three or more stories must be equipped with two elevators. There may be buildings that were built before the passing of that law that are structurally unable to accommodate this law.
In the business world, a grant usually refers to a stock option grant.However, the term can also refer to federal funding for research, business ventures or partnerships.
In the legal world, a grantee is a person who receives something. In real estate, a grantee is a person who receives property after a sale or other transfer of title.
In the legal world, a grantor is a person or entity creating a trust. A trustee is a person or entity that has a fiduciary duty to another person or entity, called the beneficiary.
In general, a guarantee is a promise to take responsibility for another company's financial obligation if that company cannot meet its obligation.The entity assuming this responsibility is called the guarantor.
Head traders have to be licensed, which means they have to pass at least one relevant exam administered by FINRA.There are several exams that can make a person eligible to become a head trader, and the correct one depends on the nature of the trading (i.e., commodities, municipal bonds, stocks, etc.).
The Health Insurance Portability and Accountability Act (HIPAA) is a federal law that promises continued health insurance coverage and ensures health information privacy for those covered by health insurance plans. HIPAA was passed in 1996 as an amendment to two previous laws: the Public Health Service Act (PHSA) and the Employee Retirement Income Security Act (ERISA).
A healthcare power of attorney (HCPA) is a document that legally authorizes someone to make health-related decisions on someone else's behalf. Individuals sometimes become too unwell or unfit to make decisions regarding their healthcare treatments.
A hedge clause is a disclaimer found in financial documents that protects a financial reports' authors from liability for errors within the report. A hedge clause simply absolves the authors of wrongdoing in connection with the presented information.
A holder of record is the registered owner of a stock, bond or other security. Let's say John Doe buys 100 shares of Company XYZ.
Identity theft is the crime of using another person's personal information, credit history or other identifying characteristics in order to make purchases or borrow money without that person's permission. Let's say John Doe is at work and happens to see some paperwork on a co-worker's desk.
The term impairment refers to assets that are no longer of the same value as in a prior period.An impairment charge is used and the asset is revalued downward and a "charge" is made to net assets.
An implied warranty is an unwritten guarantee that a product or service works as expected. An implied warranty is a lot like an assumption.
In the tax and import/export world, an import duty (or customs duty) is money collected under a tariff. A duty is a federal tax on imports (or exports).
Inchoate is a legal term indicating that a transaction or activity has been discussed or even agreed upon but is not final or is still incomplete. Let's say Company XYZ wants to buy Company ABC.
Injunctions are an alternative to monetary judgments, in which the court might order a party to pay damages to another party.In some cases, they are much better for defendants to deal with; in Jane's case, the monetary damages could have come with a much higher cost if Donuts and Company alleged that it lost business in Arizona due to Jane's knock-off.
IPO Lockup refers to the period of time after a company initially goes public during which company insiders are not allowed to sell company shares. In an initial public offering (IPO) often receive stock or can exercise options and warrants that have been given during the non-public phase of the company's growth.
A jitney is an illegal scheme in which two brokers trade a stock back and forth in order to increase the trading volume and earn commissions.In some circles, a jitney is also scheme in which a broker performs trades for another broker who does not have access to a certain exchange.
The Jobs and Growth Tax Relief Reconciliation Act of 2003 was a bill passed by the U.S.Congress in 2003 as an economic stimulus measure.
Joint and several liability means an obligation to make a payment either together or individually. For example, let's say John and Jane Doe buy a car.
Joint liability refers to the individual and collective obligation of more than one party on a loan. Joint liability is best illustrated by two married people who apply jointly for a credit card to maximize the amount of money they can borrow.
Jointly and severally is a legal phrase that means two or more persons are fully responsible equally for the liability. Jointly means that both parties have joint liability, giving responsibility for the full amount of the obligation to each party. In this case, for example, if one party dies or declares bankruptcy, the full amount of the obligation falls to the other party. As such, one or both of the parties can be sued for the full obligation.
A judgment is a court order to pay someone else a sum of money or other remedy. Let's say John Doe owns a pit bull he hasn't trained very well.
A Juris Doctor (JD) is a law degree.The term first came into use in 1969.
A Katie Couric clause was a proposed provision of SEC executive compensation disclosure rules that would have required public companies to disclose compensation paid to several non-executive employees whose total compensation exceeded that of the most highly paid executive officers. The Katie Couric clause is named after former "Today Show" co-host Katie Couric, who, like many media personalities, receive high compensation but are not company officers.
Lagged reserves are currency reserves banks are required to hold with the Federal Reserve.Lagged reserves must be equal to the sum of all demand deposits from two weeks in arrears. The United States Federal Reserve regulates the U.S.
A levy is the seizure of property in order to repay debt.In the U.S., the IRS has the authority to levy.
Malfeasance is the legal term for intentionally doing something that is illegal. Let's say John Doe is Jane Smith's broker.
Marital property is property owned by a married couple. Let's say John Doe and Jane Smith get married.
The market capitalization rule is a regulation that places a floor on the total value of a company's stock for 30 consecutive days. The market capitalization rule was established by the New York Stock Exchange (NYSE) in 2004.
Market discipline refers to the obligation by banks and financial institutions to manage their stakeholders' risk in the course of their day-to-day operations. Banks and other financial institutions assume some level of risk with each loan they disburse.
A market out clause is a provision that allows an underwriter to withdraw from a stock underwriting contract. When an investment bank serves as an underwriter for an initial public offering (IPO), it has a contract with the issuing company to market and sell new shares of stock to investors in the primary market.
The Market Performance Committee is responsible for maintaining effective and organized trading operations on the New York Stock Exchange (NYSE). The Market Performance Committee consists of several members of the NYSE who closely observe the performance of trading specialists for individual stocks.
Market Surveillance is a unit of the NASDAQ stock exchange whose function is to ensure that all trading is conducted in a compliant manner. The Market Surveillance unit of the NASDAQ stock exchange is responsible for monitoring trading activity.
Material insider information is material, nonpublic information about a security or its issuer.Information is material if it might reasonably influence the users of the issuer’s financial statements.
Mineral rights are a landowner's rights regarding natural resources located on his or her land. When an individual buys or owns a piece of land, there is the possibility that the land may contain valuable minerals and or natural resources like precious metals (for example, gold and silver), iron ore or oil.
A mini-tender is an offer from an outside buyer for up to 5% of a company's stock. In a traditional tender offer, a company offers to repurchase shares of stock from its investors at a certain price per share.
Minimum-interest rules are federal regulations requiring that all loans bear interest. Many companies and individuals make loans.
A mortgage forbearance agreement is a contractual arrangement between a mortgage lender and a borrower to help the borrower catch up on payments when he/she is behind schedule. A borrower makes monthly payments of principal and interest over the term of the mortgage (usually 30 years).
Mortgage fraud refers to an applicant's untruthful representation of information on a mortgage application. Mortgage applications ask for a variety of details concerning an applicant's financial position.
A mortgage putback is a mandatory buyback of a mortgage by its original lender. Once a lender completes a mortgage, the lender often sells it to another investor in the secondary mortgage market.
A named fiduciary is a person or entity responsible for managing a qualified retirement plan in accordance with the Employee Retirement Income Security Act (ERISA). For example, let's say Company XYZ gets a 401(k) plan.
NASD Rule 2790 is a rule prohibiting FINRA members from buying IPO shares for personal gain.The rule is now just called Rule 2790, because NASD became FINRA in 2007.
The National Association of Securities Dealers (NASD) was a regulatory organization that oversaw the securities industry.The Financial Industry Regulatory Authority (FINRA) superseded NASD in 2007.
A national bank is a bank that is a member of the Federal Reserve system and the Federal Deposit Insurance Corp. In global terms, a national bank is a country's central bank.
The National Bank Surveillance System is a computer system that collects financial information about banks. The U.S.
The National Credit Union Administration (NCUA) is an agency of the United States government that charters and oversees federal credit unions.It was created by Congress in 1970.
A negative amortization limit is a clause in a loan that restricts the amount of negative amortization that can occur during the contract. Negative amortization occurs when the principal balance on a loan (usually a mortgage) increases because the borrower's payments don't cover the total amount of interest that has accrued.
Negative authorization is the term for a credit card system that approves or disapproves a credit card transaction based on whether the card appears on lists of stolen, canceled, closed, or lost account numbers. For example, let's assume John purchases $200 worth of widgets at Sears.
Negative float is the amount of time between when a person writes a check and when that check clears the account. In banking, the formula for negative float is: Negative Float = Account's Ledger Balance - Account's Available Balance For example, let's assume John has $1,000 available in his checking account today.
Negative verification is a bank method for verifying bank records. For example, let's assume Bank XYZ is performing an internal audit of the computer system that generates customers' monthly bank statements.
Negotiable refers to an item that can be sold or transferred to another party as a form of unconditional payment.Negotiable also means that the terms of an agreement can be adjusted.
A negotiable instrument is a signed document that gives the bearer of the document permission to obtain a certain amount of money. Checks are the most common negotiable instrument.
Nellie Mae is a subsidiary of Sallie Mae (SLM), the largest originator, funder and servicer of student loans in the United States.Specifically, it is responsible for originating Federal Stafford Loans, PLUS loans, consolidation loans and private loans for students and parents.
A nominee is a person or entity that takes possession of securities or other assets for the purpose of making transactions on behalf of the owner of the securities or other assets. For example, let's say that John Doe owns several positions in about 200 companies in his brokerage account.
A non-accredited investor is an individual or organization that does not meet the description of a "sophisticated" investor as defined by the Securities and Exchange Commission. According to the Securities Act of 1933, a person or entity must meet any of the following criteria to be deemed an accredited investor: An accredited investor can be a bank, insurance company, registered investment company, business development company or small-business investment company.
The descriptors "exempt" and "non-exempt" are used to describe different categories of employees as defined by the Fair Labor Standards Act (FSLA) according to US Federal employment law.Typically, a non-exempt employee is an hourly wage earner who is entitled to overtime pay at a rate of 1.5 times the usual hourly rate.
To notarize means to have a notary affix his or her seal and signature to a document signifying that he or she witnessed the signing of the document. For example, when John and Jane Doe buy a house, they must sign the closing paperwork that makes them responsible for a large mortgage, title insurance and other responsibilities.
Notaries are important people because they give documents legal weight.Notaries are commonly involved in the creation of wills, trusts, deeds and powers of attorney.
An obligation is a legal requirement to fulfill a responsibility.In the finance world, this often involves making specific payments by specific dates and/or ensuring that a company meets certain performance requirements.
Occupancy fraud occurs when a mortgage borrower lies to a bank about his or her intention to occupy the home that he or she is purchasing with the mortgage. For example, let's say John lives in Denver.
An offering memorandum is a legal document that discloses the terms, conditions, risks, and other information about a private placement.It is not the same thing as a prospectus (those are for issuances of publicly-traded securities).
The Office of the Comptroller of the Currency (OCC) is a division of the U.S.Treasury.
The Office of Thrift Supervision (OTS) was a regulatory agency that provided oversight to thrift institutions.On July 21, 2011, the OTS became part of the Office of the Comptroller of the Currency (OCC).
Pari-passu is a latin term that means "at an equal rate or pace." The term is often used in venture capital. Let's assume Company XYZ is looking for $10 million of capital.
A patent troll is a person or company whose main business purpose is to sue other people or companies for patent infringement. For example, John Doe buys a patent for the design and manufacture of a flat, rotating disc used to hold objects on a countertop or other flat surface.
Pork barrel spending is a type of appropriated expenditure that is added into a non-related Congressional bill. Pork barrel spending may also be referred to as earmarking.The Oxford English dictionary differentiates pork barrel spending from normal appropriation spending as government funded projects "designed to please...
Preemptive rights are a clause in an option, security or merger agreement that gives the investor the right to maintain his or her percentage ownership of a company by buying a proportionate number of shares of any future issue of the security. Preemptive rights are sometimes called "subscription rights," "anti-dilution provisions," or "subscription privileges." Preemptive rights are particularly relevant for convertible preferred stock.
A private placement is an offering of securities that is not registered with the U.S.Securities and Exchange Commission (SEC) Companies issuing stock in the U.S.
A proxy statement is the common name for the Securities and Exchange Commission (SEC) Form 14-A.It is the document containing the voting ballot and material information related to the propositions to be determined.
A qualified eligible participant (QEP) is a person who is allowed to trade in investment funds as defined in Rule 4.7 of the Commodity Exchange Act. In order to be a QEP, a person must own at least $2,000,000 of securities and other investments, have an open account with a futures commission merchant for at least six months, have at least $200,000 of initial margin and option premiums for commodity interest transactions and have a portfolio of those investments.
Qualified exchange accommodation arrangements are a strategy to simplify and assist with real estate exchanges made under Section 1031. For example, let's assume that John wants to sell his commercial property for $600,000.
A qualified institutional buyer (QIB or QUIB) is a company that manages at least $100 million of securities on a discretionary basis or is a registered broker-dealer investing at least $10 million in non-affiliate securities. A QIB can be an insurance company, a bank, a 401(k) plan, an employee benefit plan, a trust fund, a business development company (BDC), a charity, or even an entity owned by qualified investors.
A qualified institutional placement (QIP) occurs when the Securities and Exchange Board of India (SEBI) allows an Indian company to issue securities in India without providing preliminary filings regarding the issue. QIPs are similar to private placements in the United States.
A quiet filing is an IPO filing that intentionally excludes certain information. When a company is getting ready to go public, it files an SEC Form S-1, which is also called a prospectus.
When most people think of racketeering, thoughts of 1930s mobsters come to mind.Gangs of this time period are often associated with organized crime and operating “rackets” to illicitly earn and move money throughout criminal networks. Today, racketeering takes place through complex operations that may cross over from physical to digital, while law enforcement actively pursues these illegal enterprises.
The Real Estate Settlement Procedures Act, abbreviated as RESPA, is a federal ordinance that was established by the U.S.Department of Housing and Urban Development (HUD).
A red herring is a registration statement filed with the Securities and Exchange Commission (SEC) by a company that intends to make a public equity offering.The red herring is a rough draft of the company's prospectus and includes a description of the company's business, financial condition, strategy, management, litigation and risk factors.
Regulation DD is a directive created by the Federal Reserve.It was enacted to fulfill the Truth in Savings Act (TISA) that was passed in 1991, which requires lenders to provide accurate information about fees and interest to account holders when they begin banking with that institution.
Regulation Fair Disclosure (Reg FD) requires all publicly traded companies to disclose material information to all investors simultaneously. The Securities and Exchange Commission (SEC) issued a ruling in 2000 requiring publicly traded companies to disclose important information pertaining to the business finances, market, competition, and principals (i.e.
Regulatory data is information that must be provided by a company to a regulatory agency. Protecting consumers is the main rationale offered by governments looking to regulate economic activity, and they try to do so in two primary ways.The first is by preventing market failures.
Rescission is the cancelling of a contract so that it is no longer legally binding.A court can release parties from any obligations under the contract and revert them to their positions before the contract was executed.
Right of first refusal grants the terms of a transaction to one party to determine if they are interested (i.e., the holder of the right of first refusal) before it is given to a third party. Right of first refusal is a contractual term giving its holder the option to buy or sell something before the owner is allowed to buy or sell the same item to a third party.
A routing number is a exclusive identification number assigned to banking institutions by the American Bankers Association (ABA). For those banks and banking institutions that qualify as account holders with the Federal Reserve, the ABA assigns a routing number for identification.
The Sarbanes-Oxley Act, officially named the Public Company Accounting Reform and Investor Protection Act of 2002, became law on July 30, 2002.The law was informally named after its sponsors, Senator Paul Sarbanes (D-MD) and Representative Michael G.
A beneficial ownership report, known as SEC Schedule 13-D, is a public notice of anyone who has acquired 5% or more of a voting class of a company's equity securities. For example, let's say you really like Company XYZ stock.
An SEC Form 11-K is an annual report that is filed with the Securities and Exchange Commission (SEC) for employee stock purchase plans and similar savings plans that constitute securities registered under the Securities Act of 1933. A Form 11-K requires the following: Audited financial statements for the past two fiscal years Audited statement of income and changes in plan equity for each of the latest three fiscal years of the plan Companies aren't the only organizations that must file annual reports with the SEC.
SEC Form BD is an application with the Securities and Exchange Commission (SEC) to register as a broker-dealer. A Form BD makes public the information about any broker-dealer that wishes to trade securities.
The Securities Act of 1933 was the first law passed that imposed regulations on the securities industry following the stock market crash of 1929. The stock market crash of 1929 resulted from more than a decade of unsavory and imprudent business and investment practices.
The Securities and Exchange Commission, also known as the SEC, is a regulatory body that was established as a result of the Securities Act of 1934.Founded after the stock market crash of 1929, the SEC is the federal agency responsible for the oversight and enforcement of laws pertaining to the securities industry.
The Series 63 (formally known as the Uniform Securities Agent State Law Exam) primarily covers a specific state's laws and ethical standards.Some states require brokers to obtain this license before soliciting clients and taking orders.
Series 7 is a license that is required before an individual can sell securities.Those who pass the exam for a Series 7 license are eligible to become a registered representative of broker-dealers in the United States.
The Series 82 is an exam for individuals who want to be licensed to do primary offerings of private placements. The Financial Industry Regulatory Authority (FINRA) administers the Series 82 exam as mandated by the Gramm-Leach-Bliley Act of 1999.
A shelf registration is the filing and registration with the Securities and Exchange Commission (SEC) for a security offering that is released to the public market incrementally over a period of time (shelf offering). Under Rule 415, the SEC allows an issuer to register new securities, and then shelve the public offering for up to two years. A shelf registration requires that the company file quarterly and annual reports with the SEC.
The Taft-Hartley Act, officially known as the Labor-Management Relations Act, is a federal labor law that regulates the actions of labor unions. Ratified in 1947, the Taft-Hartley Act sought to reform labor union law, largely to oversee management and collective bargaining practices were concerned.
News stories over the past few years have focused on tariffs and rumors of “escalated trade wars” between the United States and another country.But what is a tariff?
A tax bracket is range of incomes for which a certain tax rate applies. The United States has a progressive tax system, which means that different portions of a person's income is taxed at increasing rates (often referred to as "marginal rates").
Tax evasion is the act of illegally avoiding tax liability. Tax evasion is a felony.
Generally, tax exempt means free from federal income taxation. Tax exemptions can apply to a portion of an individual's income or to the nature of an organization.
Tax fraud is the willful and intentional act of lying on a tax return for the purpose of lowering one's tax liability. For example, let's say John owns a painting business.
Tax incidence is a term that describes whether producers or consumers bear the burden of a new tax. For example, let's assume that Congress passes a bill that places a $0.10 per ounce tax on potato chips in an effort to curb obesity in the United States.
Also called the Revenue Reconciliation Act of 1993, the Tax Reform Act of 1993 was a major revision to the United States tax system. The Tax Reform Act of 1993 had several components that received a lot of attention.
A tax roll is a list of taxable property in a city, county, state or other taxing authority. For example, let's assume that the city of Investon has 1,500 residents.
"Taxation without representation" is a phrase commonly thought to have been first made famous by Boston lawyer James Otis in 1765.It refers to the idea of imposing taxes on people who have no recourse against or control over the taxing authority.
The Taxpayer Relief Act was created in 1997 and signed by President Bill Clinton.It represented a major overhaul of the U.S.
A trademark is any legally-protected abstract or figural representation or slogan associated with a company or product that deliberately differentiates it in the market. A trademark is a marketing device that visually sets a company or product apart from similar items trying to gain market share.
The U.S.Agency for International Development (USAID) is a federal agency that works to encourage foreign markets for American goods.
The U.S.Bureau of Engraving and Printing creates and produces U.S.
The U.S.House Financial Services Committee is a group of 60 Congressional representatives that make decisions regarding the economy, the banking system, housing, insurance, securities rules and financial markets.
The Uniform Gifts to Minors Act (UGMA) is a set of rules under which adults can give money to a minor via a custodial account in the minor's name.In some states, the UGMA has been superseded by the Uniform Transfers to Minors Act (UTMA).
Usury is lending money at an interest rate thought to be irrationally high or higher than permitted by law. Usury is another word for predatory lending, which is the act of imposing unfair and abusive loan terms on borrowers.Predatory lenders charge unreasonably high-interest rates and usually target borrowers with poor credit and few other options to borrow money at reasonable rates. To prevent usury, some jurisdictions limit the annual percentage rate (APR) that a lender may charge, while others outlaw the practice entirely. The concept of usury may be an interesting academic topic, but regrettably it has little relevance in consumer lending.
Also called garnishment, a wage execution is a process under which money owed or paid to a borrower is given to a creditor instead. Let's say John Doe has stopped paying child support to his ex-wife.
The waiting period refers to the time period between a company filing a registration statement with the US Securities and Exchange Commission (SEC) and the SEC declaring that statement to be effective.This is also referred to as the "quiet period." Under the SEC rules, once a company makes its SEC registration filing for its initial public offering, it must not release information about its activities or related parties to the public until the SEC approves the registration for the offering. The SEC interprets this rule broadly, even including board members, management, and employees talking about the company.
A waiver is a party's voluntary renunciation of rights in a contractual arrangement. When two parties enter into a contract, they often agree to forfeit some of their respective rights or claims.
A waiver of exemption is a clause in a contract that allows a creditor to seize property that state laws may exempt from seizure. Let's assume 65-year-old John Doe borrows $250,000 to buy a house.
A waiver of notice is an agreement that allows people to conduct certain legal procedures without giving formal notification that he or she is going to do so. For example, let's assume that John Doe dies and his estate goes to a probate court so that the judge can dole out the assets to heirs and beneficiaries.
A waiver of premium rider is language in an insurance policy that allows the insured to stop making premium payments if he or she becomes ill or disabled. For example, let's assume that John Doe has a life insurance policy with Company XYZ.
A waiver of subrogation prevents an insurer from seeking payments from third parties that cause losses to the person or business it is insuring. For example, let's say ABC Insurance sells a property insurance policy to 123 Shopping Center.
A warranty is a guarantee, usually written, that a product or service works as expected. For example, when you buy a new car from a car dealer, the warranty states that the car works.
Water rights are the legal permissions to use water in a specific way. For example, let's assume that John buys a house on the famous Yellowstone River in Livingston, Montana.
A Wells Notice is a letter from a regulator such as the Securities and Exchange Commission that warns a financial institution or financial professional that the SEC is beginning an investigation into the institution's or professional's activities. Specifically, a Wells Notice informs a person or institution that a regulator intends to recommend that the Justice Department or other authority begin enforcement proceedings against the person or institution.
An X-mark signature is a mark made by a person who is not able to sign his or her name. Let's say John Doe suffers a traumatic brain injury and can no longer read or write.
Zoning is a method of determining how people can use land and buildings within a certain area. Zoning typically delineates areas within a town acceptable for residential construction, commercial construction, industrial construction and agricultural space.