Mutual fund investors are like anyone else—they find their time consumed by jobs, family obligations, and the myriad of other priorities we face in today’s world.  They are lucky if they can make it to the gym in their spare time.  So, to expect most investors to closely follow the performance of their fund investments,…

Ponzi Scheme A Ponzi scheme is an investment fraud that pays existing investors with funds collected from new investors. Ponzi scheme organizers often promise to invest your money and generate high returns with little or no risk. But in many Ponzi schemes, the fraudsters do not invest the money. Instead, they use it to pay…

In case you are wondering whether to bribe government officials to get government contracts, the answer is almost always “no.”  The Foreign Corrupt Practices Act (“FCPA”) makes it unlawful for U.S. businesses and individuals (and foreign private issuers) to make payments to foreign government officials to assist in obtaining or retaining business. Specifically, the anti-bribery…

The SEC charged Goldman Sachs, who settled for $15 million, with Improperly documenting the locales used when clients borrowed securities to short sell against them. Full release available here. FOR IMMEDIATE RELEASE 2016-9 Washington D.C., Jan. 14, 2016 — The Securities and Exchange Commission today announced that Goldman, Sachs & Co. has agreed to pay…

New Areas of Focus Include Liquidity Controls, Public Pension Advisers, Product Promotion, Exchange-Traded Funds and Variable Annuities FOR IMMEDIATE RELEASE 2016-4 Washington D.C., Jan. 11, 2016 —The Securities and Exchange Commission today announced its Office of Compliance Inspections and Examinations’ (OCIE) 2016 priorities.  New areas of focus include liquidity controls, public pension advisers, product promotion, and…

Last week, in my groupie fan-club review of Commissioner Luis Aguilar’s best speeches, I chose his December 17, 2014 speech where he proposed updates to the rules regarding transfer agents as his “greatest speech ever.”  A bold prediction if I do say so myself. Especially considering I haven’t read all of his speeches (Commissioner Aguilar,…

“How a Corporation Issues Additional Shares”[i] A corporation will most likely decide to issue additional shares of stock in order to raise additional capital. The benefit of raising additional capital is obvious—more capital for the corporation to use in order to grow. The main potential downside of issuing more shares in order to raise capital is a…

何谓证券监管? 由于想对基本证券法获得基本的认识,所以我买了克米特·霍尔的《牛津美国法律指南》(如果大家通过我上面提供的链接购买这些书,那么我将什么都得不到,但我还是要给大家看一下,我相信大家不管怎样都会买的)。我现在在阅读有关证券法的入门教程,瞧,是托马斯·李·哈森写的。 托马斯·李·哈森无处不在。我办公室有六七本关于证券监管的论文集,其中一本叫《证券监管概论》,还有一本是案例汇编,我至少可能会在2017年的证券监管课程中讨论这本汇编(我目前用的是《Choi & Pritchard》)。 他写的一些内容的确不错,我在这里改述几段给大家看。 “与大部分其它商品不同的是,证券不具有内在价值;它们只是代表了他物的权利。大部分商品生产是用来销售以及使用或消费的;政府对这些商品的监管主要集中在保护消费者免受危险品、虚假宣传以及不公平或非竞争性定价行为的侵害。证券在很多方面不同于这些商品,这些不同都反映在联邦证券法中。 “证券代表的只是持有人对公司或部分其它实体的无形权利。不像商品,证券无法实现生产;它们只能由发行证券的实体来创造。由于证券本身没有任何价值,代表的只是他物的权利,因此,证券几乎可以无限额发行,且不必产生任何成本。因此,证券法的一个重要关注点是确保证券向公众发售时,投资者对“他物”是什么以及相关证券在其中实际代表了多大权益获得一个准确的概念。证券的买受人并不是证券的消费者。 “证券是一种货币形式,它在所谓的“二级市场”中进行交易,取决于供求关系,证券的交易价格市场发生波动。以证券市场不断涌入有关证券在证券市场中交易的公司或其它实体的信息为基础,证券法旨在确保存在一个有效的证券市场。证券法要求进行披露……证券交易市场对操纵和欺诈行为很敏感。[i]为了防止“内幕人士”利用非公开信息从事内幕交易以及防止公司管理人员及其他人员提供各类虚假陈述,证券法大都包含通用的“反欺诈”条文。对经纪商、交易商以及职业操盘手实施监管旨在确保这些专业人士不会利用高人一等的操盘经验占投资者的便宜……” “联邦证券法由多项单行法规组成…… “公开发售证券受《1933年证券法》监管。除了特定的豁免情形外,该法案禁止发售和销售未向证券交易委员会办理登记的证券。根据证券登记要求,发售证券时,发行人仅可使用指定的披露文件。发售或销售证券时,该法案禁止发生欺诈行为。该法案以及随后颁布的其它联邦证券法的基本原理都是通过要求充分披露,使投资者在知情的情况下作出投资决定。联邦证券法否定了很多州采纳的立法路径,也就是著名的“蓝天”法,后者试图控制证券发售的优点以及试图防止买卖不守信公司的股票。 “根据《1934年证券交易法》,联邦法规的效力开始及于已发行在流通证券在二级市场中的交易。该法案建立了证券交易委员会(下称“SEC”),并赋予了SEC实施联邦证券法的职责。为了有效地监管不同的证券市场主体,该法案订明了若干不同的披露和登记条文。该法案监管上市公司发行的证券;禁止在买卖证券时运用各类“操纵或欺诈手段或计谋”;贷款可能用于证券买卖的情况下,限制贷款的金额;要求经纪商和交易商向SEC办理登记并监管他们的活动;以及,规定国家证券交易所及协会、清算机构、过户代理以及证券信息处理商应向SEC办理登记并接受监督。” 这仅仅是对证券法入门教程的预览。再一次提醒大家,这类有趣的概念会失效。例如,《创业企业融资法案》新增第三篇反映的整体概念和理念(即,众筹)和哈森对证券的定义和理念(即,证券是一种货币形式)是一致的,由于“大众”应当自行决定投资公司能够获得的好处,新增的第三篇还涉及了信息的有效流动。这基本上就是证券披露的“维基百科”。监管部门主要关心的问题是,试图抬升股票价格的内幕人士是否会故意误导“大众”。证券的限制期是一年,希望这样能够遏制部分滥用行为。   [i]有一本关于证券市场操纵的趣味读物叫《操盘手回忆录》,这本书的时间比《1933年证券法》和《1934年证券交易法》都要早。它是我能想到的用来诠释对证券法的需求的最好示例了。

Testimony Before the Subcommittee on Securities, Insurance, and Investment Stephen Luparello Vice Chairman DECEMBER 14, 2011 December 14, 2011 Chairman Reed, Ranking Member Crapo and Members of the Subcommittee: I am Steve Luparello, Vice Chairman of the Financial Industry Regulatory Authority, or FINRA. On behalf of FINRA, I would like to thank you for the…

When a company (the “Company“) is considering submitting a listing application to list its common shares for trading on the NYSE MKT LLC (formerly AMEX, “NYSE MKT”) there are certain requirements that need to be fulfilled.  This blog post summarizes the listing and corporate governance requirements and listed company fees of NYSE MKT for common…