Category Archives: Securities
Attacks On Securities Regulators To Be Decided In 2024
Securities law in the United States is an ever-evolving entity, given its youth, and with every legal decision, securities investors and regulators are required to adapt. In 2024, several significant cases are poised to potentially affect securities regulators on an integral level, forcing major changes for the entire industry. Whether you are an investor… Read More »
Rescheduling Cannabis & The U.S. Securities Market
In early January 2024, the U.S. Department of Health & Human Services (HHS) officially recommended rescheduling cannabis from a Schedule I drug to a Schedule III drug. While this would not lower the amount of drug-related convictions among the general populace, it would open up the possibility of greater research and commerce related to… Read More »
SEC Stock Buyback Rules Overturned In Fifth Circuit
In May, the Securities & Exchange Commission (SEC) adopted a new rule intended to force more public disclosure on companies with regard to stock buybacks. Stock buybacks happen when a company purchases some of its own shares, and they are done for multiple reasons – to boost the stock’s value, to prevent a takeover,… Read More »
Explaining Private Placement Of Securities
If someone is wanting to invest their money in the stock market or in securities, they have many options. The U.S. Securities & Exchange Commission (SEC) requires that securities specifically either be registered with the commission, or qualify for an exemption under the Securities Act of 1933. Securities that qualify for a specific exemption… Read More »
Explaining EDGAR Filings For New Market Participants
In order to comply with U.S. securities law, every publicly traded company must submit reports at regular intervals to the Securities & Exchange Commission (SEC). For some, this amount of paperwork can be extensive – but it can be filed electronically, thanks to the EDGAR (Electronic Data Gathering, Analysis and Retrieval) system. For a… Read More »
Explaining Blue Sky Laws
In the 1920s, prior to the Great Depression, speculative investments were widespread. There was no real oversight of the securities market (the Securities & Exchange Commission did not come about until the mid-1930s) and as such, firms did not have to provide any kind of establishing information about their investments. This contributed significantly to… Read More »
Can Cannabis Companies Issue Securities?
Despite significant gains at the state level, marijuana is still illegal according to U.S. federal law (and Florida state law as well). Because of this, laws originally intended to prohibit potential money laundering create a steep ‘compliance burden’ for financial institutions, making it all but impossible for state-level cannabis facilities to get financing. One… Read More »
US Sues Two Major Cryptocurrency Exchanges Within 24 Hours
The battle between the U.S. Securities & Exchange Commission (SEC) and the cryptocurrency industry has raged for quite some time now, with the federal agency fighting hard to bring the industry under its aegis, and the industry stubbornly refusing oversight. In early June 2023, though, the SEC filed suit against two of the largest… Read More »
Rule 144, 101: Explaining The Most Common Securities Exception
There are several types of securities sold on the U.S. market, including restricted and control. Control (not ‘controlled’) securities are those held by an affiliate of the company, while restricted securities are most often offered to investors via private sales. Neither restricted nor control securities can be resold in the U.S. unless they are… Read More »
How To Spot Account Churning In Securities Law
Most people who are trusted to handle securities have what is known as a fiduciary duty to those on whose behalf they are operating. However, it is sadly not uncommon for some financial professionals to try and enrich their profiles at the expense of their clients. One common way this is done is via… Read More »
