Questions tagged [finance]
Questions involving fungible assets -- especially securities and loans (mortgages, debts, etc.).
159
questions
2
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1answer
65 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 ...
2
votes
1answer
47 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 ...
-2
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0answers
59 views
Loan contract from Toyota dealership [closed]
I recently bought a car with finance but it was under my mom’s name because she had the credit to sign it. It was my first time with the loan and as an immigrant with both my parents who couldn’t ...
3
votes
1answer
72 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 ...
-2
votes
1answer
47 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 ...
-1
votes
2answers
74 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% ...
1
vote
2answers
57 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 ...
5
votes
0answers
68 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 ...
0
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0answers
39 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 ...
0
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0answers
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 ...
2
votes
1answer
30 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 ...
1
vote
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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vote
2answers
91 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 ...
3
votes
3answers
216 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 ...
0
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0answers
18 views
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 ...
0
votes
1answer
14 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.
...
4
votes
1answer
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 ...
1
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0answers
26 views
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 ...
0
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0answers
21 views
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" ...
-1
votes
1answer
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 ...
0
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0answers
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 ...
-2
votes
1answer
126 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 ...
0
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0answers
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 ...
2
votes
0answers
69 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 ...
0
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0answers
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 ...
0
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0answers
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 ...
1
vote
2answers
152 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 ...
3
votes
1answer
67 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 ...
6
votes
2answers
596 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 ...
-1
votes
3answers
898 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 ...
2
votes
2answers
153 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 ...
3
votes
0answers
49 views
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'...
0
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0answers
33 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 ...
2
votes
0answers
39 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 ...
2
votes
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 ...
0
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0answers
27 views
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 ...
5
votes
2answers
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 ...
0
votes
2answers
198 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 ...
0
votes
1answer
131 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 ...
3
votes
2answers
218 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 ...
0
votes
0answers
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 (...
1
vote
1answer
121 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 ...
2
votes
2answers
132 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 ...
6
votes
3answers
906 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 ...
9
votes
2answers
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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votes
2answers
54 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 ...
3
votes
2answers
331 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 ...
3
votes
3answers
399 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 ...
1
vote
1answer
110 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?
2
votes
2answers
96 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 ...
