Questions tagged [finance]

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

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1answer
47 views

Is it possible for a non-citizen nor GC holder do crowdfunding inside the US?

Supose that a person A is an international student in the US. A has an idea and like to launch a company on that. I know A doesn't have a work permission but also believe that A can register a company ...
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1answer
53 views

Insider trading and assertions made by influent agents

It is possible for an influent (private) agent, namely someone who has the power to direct the market, to buy a stock before giving a positive announcement about the stock itself? Does his investment ...
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67 views

Legality of Auctioning International Criminals/Terrorists?

Wild hair brain thought here that I'm not finding much on. So the idea is this: there are international bounties for heinous individuals that multiple people may have an interest in capturing, be they ...
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1answer
138 views

Is it legal for a college to ask for a 12-month financial history?

I'm trying to pull together my in-state residency petition before my fall bill is due after finding out suddenly that my residency was listed as out-of-state while I was on scholarship. The petition ...
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1answer
64 views

Are large banks required to write blueprints on how to break them up in case they go bankrupt in the United States?

Are large banks required to write blueprints on how to break them up in case they go bankrupt? I remember there was a talk about requiring large banks to write blueprint on how to break them up in ...
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36 views

Are non-banking companies required to hold in reserve in certain situation?

Banks with more than $124.2 million in net transaction accounts were required to maintain a reserve of 10% of net transaction accounts. Banks with more than $16.3 million to $124.2 million needed to ...
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37 views

Under what circumstances, are market makers allowed to engage in naked short selling?

It is important to note that naked short selling is not always evidence of intent to manipulate prices. Under certain circumstances, a market maker may engage in naked short selling to stabilize the ...
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Do Donald Trump's actions constitute embezzlement?

This question is inspired by this other question. In that question, it was written that: Donald Trump moved more than $200,000 donated to his Make America Great Again PAC into his own private ...
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1answer
98 views

Is it allowed for a retailer that accepts Visa cards to deny those issued by a particular bank?

This is really a two-parter. Friend of mine who is very bad with money used one of those online services that let you buy something in the moment and pay for it afterward with fixed payments over a ...
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2k views

Is transfer pricing legal in the United States?

Is transfer pricing legal in the United States? Transfer pricing allows companies to sell to its own subsidiaries without using market pricing mechanisms to do so. Is this legal in the United States? ...
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Removing deceased spouse from mortgage - TX | USA

A couple years ago, the lender on my mortgage approached me about refinancing the house to lower my payment, but my wife passed away several years ago. Being in our early 30s, and poor as could be, a ...
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1answer
44 views

Storing data from stock data feed provider like Yahoo! Finance or FMP Cloud

Suppose a developer creates a web application for stock market alerts and notifications. Is it legal to store data obtained from purchased subscription of data feed providers like Yahoo! Finance or ...
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1answer
60 views

Regulation of P2P lending in India

Regarding the legal aspects of peer-to-peer lending in India, I have two questions— Whether P2P lending in India is regulated or not? If it is regulated then what are the related laws/rules and ...
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1answer
37 views

How do you get an interest-free conditional debt recognized?

How do you get an interest-free conditional debt recognized? Let's say I sign a contract with a relative that says upon my death, you get X amount of money if I have enough money to service that debt, ...
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1answer
69 views

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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2answers
176 views

Can I buy 2 earthquake policies on the same home?

I live in a state with stupidly expensive state-sponsored earthquake insurance. To get a 5% deductible, I basically have to buy 1/10 of a house over my lifetime... but the chance of losing my home to ...
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70 views

On the Legality of Teens Trading Stocks---Cf. Barron's (6/14): ``Here Come the Teens: New Apps Make it a Cinch for Teenagers to Trade Stocks...''

It appears according to an article (`Here Come the Teens: New Apps Make it a Cinch for Teenagers to Trade Stocks. Are They Investing---or Gambling'') which appeared in Barron's this week, minors are ...
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73 views

Should you share Credit Card details with online websites?

This comes from me casually entering my bank details on every next website. This includes Canadian tire, Home Depot, Coinbase, etc. to name a few. There are countless such (reliable and well-known) ...
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1answer
89 views

What makes a shareholder a "shareholder of record"?

In public companies filling some reports with the SEC (10K for example), there is a mention of the number of shareholders of record. Example: "As of April 20, 2021, we had approximately 40 ...
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1answer
57 views

Are tax crimes' punishments in general proportional to the amount of money?

Let's say that I sell 0.001 BTC right now on Bisq (decentralized P2P exchange) and the buyer sends me $500 USD to my bank account. I then use that $500 to buy a pair of headphones for myself. Or I ...
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2answers
127 views

How does discovery work for financial crimes?

There is a case in the news at the moment about the post office securing 736 convictions for false accounting and theft that later some were overturned on the basis of an accounting error made by an ...
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1answer
51 views

How does the US law deal with cross-border market abuse?

I guess that when some market abuse happens within the US, it is relatively easy for SEC to track down the criminals and sue them. But what makes me wonder is that what happens in case someone runs ...
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83 views

Does Unsecured Debt Have Implicit Collateral?

I am thinking of a simple case. For example, suppose I bought a home, but there is a mortgage where the contract stipulates that if I default, the bank can seize up to 95% of the home value. This 95% ...
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62 views

Can novel investable securities have intellectual property rights?

Let's say I'm a bank, and I create this really popular investment product I'm selling left and right (for example, say I'm Lewis Ranieri, and I invented the mortgage-backed security). This product is ...
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99 views

How do laws affecting racial and gender justice programs work?

Recent COVID19 relief packages in the United States include racial justice measures, such as additional funds without repayment for farmers on the basis of race. Although the COVID19 relief itself ...
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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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34 views

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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1answer
48 views

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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1answer
75 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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92 views

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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221 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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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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57 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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56 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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127 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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72 views

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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42 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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162 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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77 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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615 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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3answers
900 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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201 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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45 views

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
47 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 ...