In a promissory note scam, the individuals perpetrating the scam often stay behind the scenes. They persuade others to sell promissory notes by promising them large commissions. The individuals who sell the promissory notes to investors often...
securities
Investor Protection Guide: Pyramid Scheme
A pyramid scheme is an unsustainable, illegal business model where investment returns are typically from the principal of investments or membership fees instead of from the underlying investment gains. It is often marketed as a foolproof way...
Investor Protection Guide: Systematic Investment Plan (SIP)
Systematic Investment Plans (SIP) are regulated as Periodic Investment Plans under the federal securities laws. The primary objective of a SIP is to enable investors to clearly define an investment goal and then to help them reach it. While...
issuance
An issuance is an offering of new securities. An issuance is also referred to as a primary offering. It can be done as a public offering, e.g. an initial public offering (IPO), or as a private placement. The issuer receives the proceeds of...
issuer
The term “issuer” means every person who issues or proposes to issue any security; except that with respect to certificates of deposit, voting-trust certificates, or collateral-trust certificates, or with respect to certificates of interest or shares...
junior lien
A junior lien is a security interest on a property that is subordinate to another security interest. The prioritized security interest is called a senior lien and paid back in full prior to payment of the junior lien. If the debtor becomes...
large accelerated filer
Large accelerated filer is a class of reporting company which has significantly shorter deadlines to file their periodic reports.
Securities and Exchange Commission (SEC) Rule 12b-2 establishes the requirements a company...
lien
A lien is a security interest or legal right acquired in one's property by a creditor, or lienholder. A lien usually prevents sale of the property until the underlying obligation to the creditor is satisfied. If the underlying obligation is...
listed
Listed refers to a security that is tradeable through an exchange, such as NASDAQ or the NYSE.
To be listed, companies must be a public company and satisfy the exchange’s listing requirements. Once listed, public investors...
malfeasance
Malfeasance is an act that is illegal and causes physical or monetary harm to someone else. Malfeasance is intentional conduct that is wrongful or unlawful, especially by officials or public employees.
In the context of tort law, “...