Questions tagged [finance]

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

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2
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1answer
160 views

Insider trading due to mis-sent email?

Something that happened to a friend recently. This friend is in charge of negotiations for company A. An individual from company B, accidentally sent my friend minutes from a recent meeting outlining ...
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2answers
194 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 ...
2
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3answers
600 views

How are MMOs with real money economies allowed to operate?

A lot of Massively Multiplayer Online games include a form of "premium" in-game economy that may be purchased with real money (cash) by the player, usually for the purposes of faster progression in ...
2
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2answers
172 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 ...
2
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1answer
82 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
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1answer
40 views

Can student loans be used in retirement, brokerage, savings, checking, and 529 accounts?

I am aware of the purpose of Student Loans. However if not immediately used, I park some of the money in a savings account. But would it be legal to use the same funds in a retirement account (...
2
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1answer
45 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 ...
2
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1answer
54 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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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 ...
2
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2answers
145 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 ...
2
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2answers
136 views

Can a bank foreclose on a home of a person who has been kidnapped?

Say that an American homeowner is traveling overseas and then he/she is kidnapped by a terrorist organization. Does the American bank which gave that person the home loan have the legal right to ...
2
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3answers
169 views

Can a business impose a minimum amout for credit card payment without notice?

Recently, I visited a bar I regularly attend and purchased what I normally get, which has a pre-tip total of less than $10. When I went to pay the check with my credit card, I was told that there was ...
2
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1answer
90 views

Can ecommerce merchants contractually disallow credit card chargebacks?

If an eCommerce merchant disallows charge-backs for non-fraud related cases in their terms of service, can they sue (and win against) a customer for initiating a chargeback in violation of such terms?
2
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2answers
154 views

Are companies allowed to trade securities based on internal user data?

Take a company like Google, that has access to real time information on what billions of people want at any given moment, their plans for the future - not to mention the entire email archives of ...
2
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1answer
91 views

Would there be any legal risk to informing bank that you have been given an account number your believe is compromised?

This question was asked on the financial stack exchange. The basic premise is that someone is giving another individual 'their' account number and telling the individual to take money out of it to ...
2
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1answer
109 views

Why is English law so important to finance?

What are the features of the English law that make it so indisposable to international finance and particularly offshore companies? I've recently bumped into this passage when reading about Cyprus, ...
2
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1answer
109 views

Can someone short a stock if they have information that is likely to cause the stock to drop?

Suppose company X has a product P. An independent InfoSec expert M found a vulnerability in product P that can turn it into a significant safety hazard. Under the responsible disclosure guideline, M ...
2
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1answer
34 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 ...
2
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1answer
46 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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2answers
99 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 ...
2
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1answer
192 views

Car Loan Company not providing pay statements

The relevant jurisdiction is Michigan. How often must a large loan company deliver statements of account? When a statement on an auto loan has not been received in some time (several months) and one ...
2
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0answers
71 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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0answers
44 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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0answers
73 views

Is there a difference in “termination of employment” qualifying event trigger between group health insurance and 401(k)?

My job uses a Professional Employer Organization to handle payroll and benefits. This is a coemployment relationship, not temp/staffing, nor subcontract. The PEO is the issuer of my W-2 and listed ...
2
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0answers
40 views

Familial exemption for investment advisor representative

My parents have asked me to trade for them and they offered me a fraction of any profit. My plan is to set up a limited trade agreement and then manage the account's trades. Before doing so, I want ...
2
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0answers
13 views

Is it legal (in Europe, Belgium) to publish prices from unaffiliated establishments?

Say I want to publish the pricelist from the store down the road, without their consent, on my own website. Is this legal? If not, what should I do to enable the publishing of other businesses prices?
2
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0answers
71 views

Spouse hiding money

Can a lawyer request payslips from an employer? I am separated and my spouse is hiding money in a separate account in an attempt to pay less maintenance. Any advice? My location is South Africa. ...
2
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0answers
544 views

Internet banking regulations in the UK

I'm writing a report for some University coursework, in which I am supposed to analyse the security of an online bank. I'm trying, with some difficulty, to find any laws/regulations/standards that ...
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2answers
319 views

Why do VISA and MasterCard comply with U.S. sanctions that erode their business?

On what basis does the U.S. government prohibit American companies like VISA, MasterCard, PayPal, et al, from doing business on the Crimean Peninsula? Crimea is connected with, and backed by, the ...
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2answers
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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1answer
177 views

Is it illegal to purchase stocks with money that came from a Brinks truck?

There have been many times over the years when a Brinks truck has overturned, or the security guards forgot to lock the rear doors, and money came out of it while in route to its destination. Say a ...
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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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3answers
284 views

Liability for spouse's actions in the US

This is hypothetical. Person A and Person B are married. Person A cannot control the actions of Person B, because that would be domineering. If Person B makes a mistake that results in financial ...
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1answer
35 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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2answers
61 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 ...
1
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1answer
47 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
101 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 ...
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1answer
378 views

Are marketplace lenders subject to fair lending laws?

Are 'marketplace' lenders, such as those using Lending Club or Funding Circle, etc., subject to fair lending provisions, such as the Equal Credit Opportunity Act or the Fair Lending provisions of the ...
1
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1answer
58 views

Company wants to hold funds for customers

Are there any licensing or special bank account requirements for our company to hold funds for a customer and later deliver those funds back to the same customer? Similar to a savings account but for ...
1
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1answer
81 views

Can a retail marijuana shop bank from a locally owned bank outside of their state?

Retail marijuana stores have to deal in cash, as most major banks refuse to deal with them. This causes a very dangerous situation for the store owner, and stories are already circulating about the ...
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1answer
219 views

Avoiding the appearance of insider trading

Can one conceivably be accused of insider trading without being considered an insider at the company you work for? Is that classification by your company more just a way of categorizing employees and ...
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1answer
61 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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1answer
117 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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1answer
83 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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1answer
186 views

For a politician, is a lunch outing with Warren Buffet considered a $650,000 gift?

There is a story in the news about Nikki Haley (now former US ambassador to the UN) taking trips in a friend's (and political supporter's) private jet. See story: Watchdog wants investigation of ...
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1answer
181 views

Can a state regulate international money transfers?

A state representative from Texas next week will introdce HB 1760. The bill as presented will require persons here illegally who wire money outside the country to pay a 3% fee plus $5 per transaction. ...
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3answers
445 views

What consequences can a legal non-citizen 14 year old face if he applies for a credit card using someone else's SSN without permission?

I did this when I was 12, and I didn't know what this all was. My 12-year old mind was still working like a 6 year old. One day a letter came to my house saying you are not eligible or something, I ...
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1answer
64 views

Are US banks required to notify users of debts before passing them to collections?

Say a customer of a large American bank, let's call him Paul, overdrafts on a debit card from said bank, let's call it ABC Bank. There is no notice of an overdraft at the time the money is withdrawn, ...
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1answer
115 views

Is selling profits (a la Enron) legal?

Reading through a summary of the Enron Scandal, one of the mentioned "ventures" that Enron took, was a joint venture with Blockbuster to provide online movie rentals. In secret however, Enron had set ...
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1answer
86 views

Are “non performing” loans still “secured?”

Let's say a borrower lends most of the value of a house to a borrower. The lender does so because s/he can use the house as collateral for the loan. Suppose the borrower goes into default/nonpayment ...