Regulations: The Securities Exchange Act of 1934

The Securities Exchange Act of 1934 established "self regulatory organizations" (SROs) and empowered these organizations to:

-set guidelines for fair dealing with the public -handle complaints against broker-dealers for securities law violations -take administrative action against broker-dealers that violate industry regulations -establish arbitration procedures to settle intra-industry disputes

8K report

Corporations are required to file 8K reports within 4 business days of significant events such as a declaration of bankruptcy, merger, change in the Board of Directors, etc. The 8K is filed with the SEC, and is a public document.

The Securities and Exchange Commission was created by the:

The Securities Exchange Act of 1934

SEC Rule 10b-5-1

gives officers of publicly held companies a safe harbor from being charged with an insider trading violation if they establish a pre-arranged trading plan for that issuer's securities

penny stock

non-exchange listed, non-NASDAQ stock, under $5

Listed issuers must report:

their annual financial results to the SEC with a 10K report; their quarterly financial results to the SEC with a 10Q report; any significant events to the SEC with an 8K report. listed issues are trades in the First, Third and Fourth Markets, but not the Second Market.

Act of 1934 regulated which markets?

Secondary Market which is subcategorized into the: First Market: Trading of listed securities on a stock exchange; Second Market: Over-the-counter trading of securities not listed on an exchange; Third Market: Over-the-counter trading of securities listed on an exchange; Fourth Market: Over-the-counter trading from institution to institution directly via ECNs and ATSs.

The Securities and Exchange Commission administers the following laws:

Securities Act of 1933; Securities Exchange Act of 1934; Trust Indenture Act of 1939; Investment Company Act of 1940; Investment Advisers Act of 1940.

The short tender rule

The short tender rule states that if there is a tender offer for a company's shares, only those people who are "net long" the stock can tender.