Securities FAQs

• Q: What Is A Security?
  A: A Security is an investment instrument. It includes investments such as stocks, notes, bonds, debentures, investment contracts, interests in limited partnerships, and … More
• Q: What Are The Federal Securities Laws?
  A: Congress enacted the Federal Securities Laws In an effort to curb future excesses and to provide fair disclosure to investors. The Securities and Exchange Commission … More
• Q: What Do These Securities Laws Cover?
  A: The Securities Act generally requires companies to give investors full disclosure of all material facts, the facts investors would find important in making an … More
• Q: What Is The Securities Investor Protection Act?
  A: It is a law that establishes the Securities Investor Protection Corporation (SIPC) which acts to insure investors for up to $500,000 when the brokerage firm is a … More
• Q: Are There State Securities Laws?
  A: Yes, the federal and state governments each have their own securities laws and regulations. If a company is selling securities, it must comply with both federal and … More
• Q: What Are Blue Sky Laws?
  A: Every state has its own securities laws­ commonly known as "Blue Sky Laws"­ that are designed to protect investors against fraudulent sales … More
• Q: Are All Companies Subject To Securities Laws?
  A: Some companies, depending on their type and how they are structured, are exempt from the registration and reporting requirements of the securities laws. Although, … More
• Q: If A Company Goes Public, What Must It Disclose?
  A: Companies must report information about their operations, their officers, directors, and certain shareholders, the financial condition of the business and their … More
• Q: What is securities arbitration?
  A: In 1987, the U.S. Supreme Court held that brokerage firms could enforce pre­dispute arbitration clauses contained in their standard form customer agreements. … More