Venture Capital funding is an investment in your business, usually in the form of a stock purchase, by an individual or fund, whose goal is to help manage your company to grow rapidly.  The goal of those who provide venture capital is to sell that stock when it has greatly increased in value. That becomes…

The Securities and Exchange Commission (SEC) recently obtained a criminal conviction against a former Pharmaceutical CFO for insider trading. This was not a generic trading on a novel piece of Material Non-Public Information (MNPI) acquired through the grapevine. From the indicting Information, which was consented to by the Defendant, it was a series of intentional,…

The Securities Exchange Commission was recently awarded judgments In four cases involving a violation of SEC Rule 10b-5.  The violations in the four cases were different, but they all fell under the same SEC rule.  The first announced products that didn’t exist.  The second made misleading investment statements.  The third submitted false expense reports, and…

A fiduciary is a person or entity that is required to act in the best interests of another person, entity, or group of persons.  Typically, a fiduciary will manage assets on behalf of a beneficiary.  In, corporate law, a fiduciary can be a) a member of the board of directors; b) an officer of the…

In September of last year, the Securities and Exchange Commission (the “SEC”) adopted a new amendment to Rule 15c2-11 of the Securities and Exchange Act of 1934. The changes to Rule 15c2-11 are primarily concerned with the way companies traded Over the Counter (“OTC”) and are able to continuously be quoted by brokers using the…

Insider trading is the sharing of information around a securities transaction to a select or small group of people. Vital information is usually given to a select group of people within the company (insiders) and then those insiders share it with a select group of people outside the company. Insider trading creates an unfair advantage…

What is the SEC?  The SEC (Securities and Exchange Commission) is a large independent agency of the United States federal government created after the Wall Street Crash of 1929. The crash brought on financial ruin for financiers and businessmen, and caused America’s GNP to drop by 15%. The stock market crash was the first fall…

The SEC charged Parallax for releasing misleading information about its Covid-19 diagnostic product to boost its stock price. On July 7th, 2020, the Securities and Exchange Commission (“SEC”) announced its charge[1] against Parallax Health Science Inc (“Parallax”), a public company traded on OTCMKTS (PRLX), with its former CEO Paul R. Arena and CTO Nathaniel T….

SEC Charge Against GadGuido. On June 30, 2021, the Securities and Exchange Commission (the “SEC”) charged[1] Bay Area finance employee Mounir N. Gad for leaking non-public information to his friend Nathan E. Guido, conducting three insider trades. In total, Guido obtained $51,700 illicit profit, $11,000 of which he sent to Gad. Without admitting or denying…

What is a Private Company? A private company is also known as a privately held company, is a company that does not offer its trade to the public stock market.  What a private company does do, is offer shares of their company privately by ownership, traded, or exchanged privately. Can the SEC Investigate a Private…

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