SECURITIES BLOG

Heather and Company sell Sorority Dorm Stock? While visiting Heather’s apartment after a tennis match, Sue, Brenda, and Heather struck a conversation about their college experiences. Sue and Brenda were pleasantly surprised to find out that they were in the same...

Note defined: A note is a debt instrument –– a legal contract between a borrower and a creditor, evidencing an obligation to repay some stipulated monetary amount (which could include principal plus interest or a discounted principal) at a defined point in time. There...

Before I explain an exemption or exception to the rule, I always start with the general rule and purpose.    Section 15 of the Exchange Act of 1934 (“Act”) makes it unlawful for any broker or dealer to purchase, sell, or effect transactions in securities, using...

Testing the Waters with Rule 241 The Securities Act of 1933 (“Act”) regulates securities transactions that involve interstate commerce. Unless your securities are registered with The Securities and Exchange Commission (“SEC”) or are exempt from registration, it is...

Your real or imaginary company might make a product, provide a service or invest in real estate.   Let’s consider an astute accredited investor, whose local gourmet dog biscuit bakery advertises their private stock for sale. The founders forfeit some of their personal...

Heather subsidizes her hefty rent by offering her younger cousin a pretty place to live, while she builds up a savings nest egg and can afford her own place.  Her roommate Brenda works for the treasury department of a major retailer, acting as the coordinator of the...

The Investment Advisers Act of 1940 (“Act”) was enacted to regulate financial advisers who provide investment advice to the general public.     The baseline principle of the Act is   (1) any person (2) who, for compensation,  (3) engages in the business of...

Guarding our capital markets and protecting American investors from fraud, the US Securities and Exchange Commission (“SEC”) regulates both foreign and domestic issuers that engage in the sale and distribution of securities in the United States.  Without getting into...