Questions tagged [finance]

Questions involving fungible assets -- especially securities and loans (mortgages, debts, etc.).

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35 views

How to Interpret the SEC's Updated Accredited Investor Definition

In December of 2020, the SEC amended their definition of “accredited investor” to include investors who (among other things) hold professional certifications. I am interested in the Licensed ...
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Is it legal for a group of people to publicly and transparently recruit others to influence a stock price? [duplicate]

Generally, stock manipulation is a covert affair, with those at fault either submitting orders themselves with the intent to manipulate prices, or tricking others into doing so (e.g. pump and dump ...
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Stocks and social media (pump & dump?)

Some wealthy and famous individuals have the power to influence the stock market simply by posting on social media. For example, a famous billionaire tweets "I'm excited to see what ACME develops ...
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73 views

Is it legal for an investment firm to announce some positions/trades that aren't true?

Taking as example the 2021 GameStop short squeeze, is it legal for an investment firm to announce some positions/trades that aren't true? The question was triggered by this Tweet (mirror):
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Have brokerages like Robinhood broken contracts with their customers by refusing to execute orders?

The following question is related to this one. However, my question regards the contractual duty whilst the linked one considers the brokerage's obligation to the state. Some brokerage firms like ...
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209 views

Is the historic behavior occurring on Reddit (millions of people promoting the buying and holding of GameStop stock) illegal?

I've been a member of the subreddit r/wallstreetbets for some time now, it's this hilarious cult-like community that jokes about investment gains / losses and people celebrate making / losing money on ...
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Law 553-FL-ARB contract

Me and my grandpa signed this simple finance contract just yesterday, but what we didn’t notice was so many sheets that we signed that weren’t really pointed out, I know this is not something the ...
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1answer
13 views

Do SEC regulations require funds of funds to include in the expense ratio of the parent fund the weighted sum of the expense ratios of the holdings?

I have read: I believe SEC regulations also require a "fund of funds" to publish the expense ratio of the parent fund to include the weighted sum of the net expense ratios of the holdings. ...
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2k views

Executive order by Trump on 2020-11-12 barring investment in publicly traded companies that the US says are owned/controlled by the Chinese military

I read on finance.yahoo.com (mirror): The move stems from an executive order President Donald Trump issued on Nov. 12 barring investment in publicly traded companies that the U.S. government says are ...
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Is it legal for a firm to time their announcements based on the stock sale times indicated in the pre-established 10b5-1 plan?

I understand that SEC Rule 10b5-1 aims at reducing insider trading by having major shareholders and insiders of exchange-listed corporations trade a predetermined number of shares at a predetermined ...
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What limitations on campaign contributions, direct and indirect, exist in the US?

I know that an individual can't donate more than $2,800, but, apparently, it is not strictly followed (click on "amount"). Besides, there's a thing called the "Citizens United" ...
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56 views

Is transferring money from a company where you're a director to a company where you're an employee considered money laundering? [closed]

Say you are a full-time employee of company A, and company A providing services to company B, where you are a director and a shareholder. Company B transfers money to company A. I've been told it can ...
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55 views

Does a financial company have to disclose information about my account when requested?

I have submitted a complaint to a finance company (vehicle) who completed an investigation where I am unhappy with the outcome. I requested all evidence they have regarding my claim including ...
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1answer
125 views

My friend has alot of cash (about 55K in $100s) on hand and is afraid to put it in a bank. Should he be? [closed]

My friend was paralyzed from an injury when he was a teenager (about 30 years ago now). He has amassed about 55K in cash from being a small time marijuana dealer. He literally keeps it next to him at ...
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25 views

Out of country court case related to employee / employer financial claim

I am a contractor in Ontario, Canada. However, I am not a citizen of Canada or the US. I am contemplating a court case against my contract-employer in the US, regarding non-payment of my salary ...
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Is it illegal for a European to be paid for giving financial advice to people in the US?

I live in a country in the EU in which giving financial advice, such as stock tips, and getting paid for this is perfectly legal for a private individual. Let's say I have a friend in the US who asks ...
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39 views

Can the CEO of KODK be found guilty of insider trading?

Recently the American legacy film company KODK announced a deal with the US government to manufacture generic pharmaceuticals domestically. This announcement sent the price per share for the company ...
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16 views

What is the limitation on publishing / promoting stock positions and also having a vested interest in those stocks?

On a popular internet forum I follow for amusement, people will commonly announce their stock options positions before they make them so that once the positions succeed, they can brag while having ...
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2answers
148 views

Legality of Chaumian e-cash

In the 1980s, David Chaum, a cryptographer, came up with micropayment system that would achieve cryptographic transaction privacy. Later, in the 1990s, he attempted to build this system, but it did ...
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1answer
63 views

Harper v. IRS and the third-party doctrine

On tax day 2020, plaintiff James Harper accused the IRS of obtaining his cryptocurrency transaction history from Coinbase without a warrant. Harper is claiming the IRS violated his rights under the ...
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592 views

Why is a company allowed to change the number of shares it’s divided into after its IPO?

I read that even after an IPO, a company can change the number of shares that it’s divided into based on a board vote. What’s to prevent them from arbitrarily increasing the number of shares to raise ...
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896 views

If a Politician uses an Organized Crime Syndicate to extort a Business, is the Politician guilty of the same crime as the Syndicate?

In the United States, let's say you have: A generic POLITICIAN of any type A generic ORGANIZED CRIME SYNDICATE of any type A generic BUSINESS of any type If an ORGANIZED CRIME SYNDICATE pressures a ...
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137 views

Refused Financing for new car loan due to charge off from bankruptcy 11 years ago

State of Michigan My wife filed for chapter 7 bankruptcy 10 yrs ago and one of the debts was with Ford Motor Credit. She has good Credit now and I have okay credit. We wanted to purchase a Ford ...
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Must French financial institutions know by law the salary of their customers?

Must French financial institutions know by law the salary of their customers? One of my French banks is asking this information from me and claims they have to do so by law (and I have "declare sur l'...
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Is there any limit on how much bonuses can be given before filing for bankruptcy in the United States?

I read on https://www.cnn.com/2020/05/26/investing/hertz-bankruptcy-executive-bonuses/index.html (mirror): Hertz paid out millions of dollars in bonuses to its executives just before its bankruptcy ...
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Does the CFTC have authority over all forms of “prediction markets”?

I've been reading over previous cases that the Commodity Futures Trading Commission (CFTC) have brought up against organizations like InTrade. From what I can tell, InTrade was brought under scrutiny ...
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1answer
46 views

Could you theoretically sell financial assets in the US without coming under the jurisdiction of the federal government?

So let's say you were some financial market that operated solely in a US state so all of your transactions never crossed state lines. Would federal government agencies like the Commodities Future ...
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In Canada, is there a requirement of when a Money Services Business (MSB) and their client entity must enter into a service agreement?

I hope the question in the title lends itself to an answer. In case more clarification is required, please do not hesitate to comment below. Some background: In Canada, an MSB is required to verify ...
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21 views

Can the use of proprietary aggregations of public data be insider trading? [duplicate]

I work for a company that collects and analyzes publicly available social media data (among other things) to help with marketing / market research problems. We have business relationships with most ...
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208 views

Delivery of oil bought through futures contracts

What happens if someone is forced to take physical possession of many barrels of oil that they bought on the open market, but they have no storage space left to put it? ETA: In jeffronicus answer ...
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20 views

Negative pledge covenants

I am a layperson trying to better understand negative pledge covenants. Is following a correct example of a negative pledge covenant? John borrows $500 from Jane. Jane makes John sign a contact ...
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Financial settlement - Consent order in England

I have just applied for my decree absolute today and my wife has said she will complete the consent order papers and statement of information in a few days. Can i submit the consent order in court ...
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2answers
180 views

Can an invoice factoring company operate abroad?

Premise: Invoice factoring is a transaction in which a factor (or factoring company) purchases invoices from a business. The transaction involved is literally purchasing receivables and, for ...
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1answer
130 views

Where do I go when police refuse to investigate someone who made purchases with my debit card?

A few months ago, my debit card information was stolen and used to purchase some computer equipment in the state of Oklahoma, but the perpetrator lives in the state of Florida and I live in the State ...
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2answers
216 views

If I discover information about a company through personal investigation can I act on it without being guilty of insider trading?

Let's say I'm a skilled PI who has, through detailed investigation followed a paper trail back and discovered that Soylent Green is people! (err..spoiler warning?) I am now aware of information that ...
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29 views

Are there any legal risks to transferring money to another country for an F-1 student?

Let's assume that your dating an F-1 visa student, who is supposed to be financed by her parents in her home country to go to school in the US. She is actually getting money through other means (...
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1answer
116 views

Stock options and Insider Trading

Maybe I don't understand insider trading laws, but they seem somewhat unreasonable to me. Lets say I'm a software developer, and I accepted stock options as part of my compensation. In the course of ...
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2answers
126 views

Why is Front Running markets not treated as insider trading?

Front-Running is described in the book Flashboys and relies on an information advantage, that is apparently provided by the exchanges to a select few. Is said practice somehow different from ...
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3answers
871 views

How are employer pay statutes enforced against offending employers?

An employer recently made some strange demands as a part of a job offer. On advice from The Workplace Stack Exchange I'm going to look for work somewhere else, but I'm concerned the employer is ...
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1k views

What was wrong with the 2010 Flash Crash?

While looking for recent market crashes, I came upon 2010 Flash Crash. However, I am unable to understand what wrong the alleged perpetrator, Navinder Singh Sarao, did. Entering an "order to sell ...
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53 views

How do I write an agreement between a token issuer and token bearer?

I'm making a decetralized blockchain app that lets users create tokens and sell them to other users with the agreement that the issuer will repurchase the tokens at the bearers demand. So its pretty ...
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2answers
301 views

Can I legally guess my customer's new credit card expiry date?

As a merchant, I offer online subscription services to my customers. Often, my customer's credit card will expire, despite having an active subscription service to my product. Is it legal for me to ...
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372 views

Can a couple be charged for spending $120,000 deposited to their bank account in error?

A couple is being charged for spending $120,000 which was deposited to their account in error. This is in Pennsylvania, USA. The facts are presented as follows: One day, couple wakes up to $120,000 ...
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95 views

What does upon conversion mean?

What does it mean when an investor say "I will give you $100k in exchange for 10% equity upon conversion"? What does upon conversion exactly mean in layman's terms?
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2answers
92 views

Is internet tracking “public info” for insider trading purposes?

Suppose I own a search engine. I look at my server logs and see that the query "how to fix exploding engine" is very popular in the area around Tesla headquarters. Would it be legal to act on this ...
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1answer
79 views

Would using a StableCoin bypass the “Money Transmitter” laws in the US?

I'm considering a startup that allows news/content creators to collect nano-payments (~$0.01) for their content. Since transactions of that size are unreasonable to charge individually by Stripe/etc, ...
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1answer
41 views

Definition of privileged information in investor law

Person X makes a scientific discovery about some new metallic alloy. She then reasons that as a result of its applications, the market for some other metal will drop. Is she allowed to short the ...
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1answer
74 views

Is a monthly Patreon donation\subscription, a contractual obligation to pay someone?

Let's say I have a prepaid card with a balance of 0$ and I am subscribed to a Patreon user for the recurring monthly donation of $50. Let's say I remain subscribed to the Patreon user for 10 months, ...
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4answers
392 views

Schwab 401k 'hacked'; somehow they added/linked an unknown bank account and transfered out ~10% of my balance!! How

I recently received a couple of 'notification' emails from Schwab re. the approval/completion of various changes I supposedly requested to an old 'inactive' (past employer) 401k account, including: ...
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1answer
99 views

How is a US political campaign supposed to verify that donors from abroad are US citizens?

According the US laws, only US citizens may contribute financially to political campaigns - especially presidential campaigns. Suppose you are running a campaign. How are you supposed to verify that ...