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When investors trade securities among themselves they do so by means of the?
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Standard & Poor's rating services
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∙ 10y ago
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What does securities lending mean?
Securities lending means the lending of securities from one person to another. People like to sell their borrowed securities quickly for a profit, then purchase their original security at a lower cost.
Is commingled funds the same as hedge funds?
No, commingled funds is different from hedge funds. Commingled funds just means that the investment vehicle pools resources from different investors, meaning that those resources are not segregated as in managed accounts, for instance. Hedge funds, on the other hand, are investment vehicles that are able to invest in many asset classes, sell securities short, and use leverage. They accept only a subset of investors that qualify according to the SEC and can charge performance fees to their investors.
What underlying shares for securities mean?
It means shares of a stock (security).
Defrance between Complex Capital Structure and simple capital structure?
In simple structure,there is only common stock.There are no potentially dilutive securities. In complex structure potentially dilutive securities are present. Dilutive here means that the securities are capable of affecting the earnings per share in a downward direction. the securities are simply either bonds,option,etc
What is function of credit rating agency?
Credit Rating Agencies rate the credit-worthiness of securities instruments. The reason for doing so is for investors to gain confidence that what they are buying is what they think it is. The big players in the industry (pension/insurance funds) have mandates which prevents them from investing in securities below a certain rating. You could say that they act as a means of protecting society from excessive speculation using 'social' funds (pension/insurance) by fund managers who are out to speculate short term by taking excessive risk. Duncan of Canary Wharf
What are the major functions of securities firms?
they deliver a means of valuing and pricing investments; and they offer a vehicle that investors can use to liquidate their investments
What is underwritting and what are aspect of the risk in underwriting?
Underwriting refers to the process by which investment banks raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt capital). The services of an underwriter are typically used during a public offering.This is a way of a newly issued security, such as stocks or bonds, to investors. A syndicate of banks (the lead managers) underwrites the transaction, which means they have taken on the risk of distributing the securities. Should they not be able to find enough investors, they will have to hold some securities themselves. Underwriters make their income from the price difference (the "underwriting spread") between the price they pay the issuer and what they collect from investors or from broker-dealers who buy portions of the offering.
What does assign means in regards to securities?
to secure the assigned securities
What is important about the Securities Act of 1933?
The Securities Act of 1933, came about as a result of the stock market crash of 1929. Its features were a means to provide transparency of financial statements to investors so that informed investment decisions can be made. It also put checks in place to avoid misrepresentation in the securities market.
Spreading out the risk is called?
In business it means having many investments among many different securities or sectors to reduce the risk of owning any single investment
What does securities lending mean?
Securities lending means the lending of securities from one person to another. People like to sell their borrowed securities quickly for a profit, then purchase their original security at a lower cost.
Can primary market function without the existence of secondary market?
Yes, the primary market can function without the existence of a secondary market, but it may face some challenges: Lack of Liquidity: Without a secondary market, it can be difficult for investors to sell the securities they purchased in the primary market. This means they may need to wait for a long time before they can realize returns on their investments. Uncertain Valuation: Without a secondary market, investors may find it challenging to determine the value of the securities they hold, as they lack the pricing information provided by the secondary market. Lack of Diversification: In the absence of the ability to sell securities in the secondary market, investors may struggle to diversify their investment portfolios, increasing investment risks. While the primary market can operate independently, the presence of a secondary market helps enhance liquidity and price discovery, making markets more efficient and attractive to investors.
Is commingled funds the same as hedge funds?
No, commingled funds is different from hedge funds. Commingled funds just means that the investment vehicle pools resources from different investors, meaning that those resources are not segregated as in managed accounts, for instance. Hedge funds, on the other hand, are investment vehicles that are able to invest in many asset classes, sell securities short, and use leverage. They accept only a subset of investors that qualify according to the SEC and can charge performance fees to their investors.
What underlying shares for securities mean?
It means shares of a stock (security).
What does offering corporation mean?
"offering corporation" means a corporation that is offering its securities to the public within the meaning of subsection and that is not the subject of an order of the Commission deeming it to have ceased to be offering its securities to the public
What was the purpose of SEC?
IntroductionThe mission of the U.S. Securities and Exchange Commission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.As more and more first-time investors turn to the markets to help secure their futures, pay for homes, and send children to college, our investor protection mission is more compelling than ever.As our nation's securities exchanges mature into global for-profit competitors, there is even greater need for sound market regulation.And the common interest of all Americans in a growing economy that produces jobs, improves our standard of living, and protects the value of our savings means that all of the SEC's actions must be taken with an eye toward promoting the capital formation that is necessary to sustain economic growth.The world of investing is fascinating and complex, and it can be very fruitful. But unlike the banking world, where deposits are guaranteed by the federal government, stocks, bonds and other securities can lose value. There are no guarantees. That's why investing is not a spectator sport. By far the best way for investors to protect the money they put into the securities markets is to do research and ask questions.The laws and rules that govern the securities industry in the United States derive from a simple and straightforward concept: all investors, whether large institutions or private individuals, should have access to certain basic facts about an investment prior to buying it, and so long as they hold it. To achieve this, the SEC requires public companies to disclose meaningful financial and other information to the public. This provides a common pool of knowledge for all investors to use to judge for themselves whether to buy, sell, or hold a particular security. Only through the steady flow of timely, comprehensive, and accurate information can people make sound investment decisions.The result of this information flow is a far more active, efficient, and transparent capital market that facilitates the capital formation so important to our nation's economy. To insure that this objective is always being met, the SEC continually works with all major market participants, including especially the investors in our securities markets, to listen to their concerns and to learn from their experience.The SEC oversees the key participants in the securities world, including securities exchanges, securities brokers and dealers, investment advisors, and mutual funds. Here the SEC is concerned primarily with promoting the disclosure of important market-related information, maintaining fair dealing, and protecting against fraud.Crucial to the SEC's effectiveness in each of these areas is its enforcement authority. Each year the SEC brings hundreds of civil enforcement actions against individuals and companies for violation of the securities laws. Typical infractions include insider trading, accounting fraud, and providing false or misleading information about securities and the companies that issue them.One of the major sources of information on which the SEC relies to bring enforcement action is investors themselves - another reason that educated and careful investors are so critical to the functioning of efficient markets. To help support investor education, the SEC offers the public a wealth of educational information on this Internet website, which also includes the EDGAR database of disclosure documents that public companies are required to file with the Commission.Though it is the primary overseer and regulator of the U.S. securities markets, the SEC works closely with many other institutions, including Congress, other federal departments and agencies, the self-regulatory organizations (e.g. the stock exchanges), state securities regulators, and various private sector organizations. In particular, the Chairman of the SEC, together with the Chairman of the Federal Reserve, the Secretary of the Treasury, and the Chairman of the Commodity Futures Trading Commission, serves as a member of the President's Working Group on Financial Markets.This article is an overview of the SEC's history, responsibilities, activities, organization, and operation. More detailed information about many of these topics is available throughout this website.Creation of the SECThe SEC's foundation was laid in an era that was ripe for reform. Before the Great Crash of 1929, there was little support for federal regulation of the securities markets. This was particularly true during the post-World War I surge of securities activity. Proposals that the federal government require financial disclosure and prevent the fraudulent sale of stock were never seriously pursued.Tempted by promises of "rags to riches" transformations and easy credit, most investors gave little thought to the systemic risk that arose from widespread abuse of margin financing and unreliable information about the securities in which they were investing. During the 1920s, approximately 20 million large and small shareholders took advantage of post-war prosperity and set out to make their fortunes in the stock market. It is estimated that of the $50 billion in new securities offered during this period, half became worthless.When the stock market crashed in October 1929, public confidence in the markets plummeted. Investors large and small, as well as the banks who had loaned to them, lost great sums of money in the ensuing Great Depression. There was a consensus that for the economy to recover, the public's faith in the capital markets needed to be restored. Congress held hearings to identify the problems and search for solutions.Based on the findings in these hearings, Congress - during the peak year of the Depression - passed the Securities Act of 1933. This law, together with the Securities Exchange Act of 1934, which created the SEC, was designed to restore investor confidence in our capital markets by providing investors and the markets with more reliable information and clear rules of honest dealing. The main purposes of these laws can be reduced to two common-sense notions:Companies publicly offering securities for investment dollars must tell the public the truth about their businesses, the securities they are selling, and the risks involved in investing.People who sell and trade securities - brokers, dealers, and exchanges - must treat investors fairly and honestly, putting investors' interests first.Monitoring the securities industry requires a highly coordinated effort. Congress established the Securities and Exchange Commission in 1934 to enforce the newly-passed securities laws, to promote stability in the markets and, most importantly, to protect investors. President Franklin Delano Roosevelt appointed Joseph P. Kennedy, President John F. Kennedy's father, to serve as the first Chairman of the SEC.Organization of the SECThe SEC consists of five presidentially-appointed Commissioners, with staggered five-year terms (see SEC Organization Chart; text version also available). One of them is designated by the President as Chairman of the Commission - the agency's chief executive. By law, no more than three of the Commissioners may belong to the same political party, ensuring non-partisanship. The agency's functional responsibilities are organized into five Divisions and 18 Offices, each of which is headquartered in Washington, DC. The Commission's approximately 3,500 staff are located in Washington and in 11 Regional Offices throughout the country.It is the responsibility of the Commission to:interpret federal securities laws;issue new rules and amend existing rules;oversee the inspection of securities firms, brokers, investment advisers, and ratings agencies;oversee private regulatory organizations in the securities, accounting, and auditing fields; andcoordinate U.S. securities regulation with federal, state, and foreign authorities.The Commission convenes regularly at meetings that are open to the public and the news media unless the discussion pertains to confidential subjects, such as whether to begin an enforcement investigation.
In 1929 what did the stock market crash into?
The term "stock market crash" means the prices dropped so low and so quickly, they were basically worthless. The crash caused panic among investors. The market didn't physically crash into anything.
