Regulation & Compliance

An individual or entity that meets SEC-defined financial thresholds, qualifying them to invest in certain unregistered securities offerings.

A parallel tax system designed to ensure high-income earners pay a minimum amount of tax regardless of deductions and credits.

Laws, regulations, and procedures designed to prevent criminals from disguising illegally obtained funds as legitimate income.

International banking regulations developed by the Basel Committee that set minimum capital requirements and risk management standards for banks worldwide.

The true owner of an asset or account who enjoys the benefits of ownership, even if the legal title is held in another name.

State-level securities regulations that require the registration and sale of securities to protect investors from fraud.

The profit realized when an investment is sold for more than its purchase price, subject to taxation at rates that vary based on holding period and income level.

Tax on profits from selling investments. Short-term gains (held <1 year) taxed as income; long-term gains taxed at lower rates.

The minimum amount of capital (equity and reserves) that banks and financial institutions must hold relative to their risk-weighted assets, mandated by regulators to ensure solvency.

A regulatory enforcement action ordering an individual or company to immediately stop a specific activity deemed illegal, fraudulent, or in violation of securities laws.

The U.S. federal agency that regulates commodity futures, options, and swaps markets to protect market participants from fraud and manipulation.

An information barrier within a financial institution that prevents the sharing of confidential information between departments to avoid conflicts of interest.

Automatic trading halts triggered when stock indices or individual securities experience rapid price declines, designed to prevent panic selling.

A professional responsible for ensuring a financial institution adheres to all applicable laws, regulations, and internal policies.

A legal agreement between a regulatory agency and a company resolving alleged violations without the company admitting or denying wrongdoing.

A regulatory agreement where a firm or individual agrees to cease certain practices without admitting guilt.

The original value or purchase price of an investment, adjusted for stock splits, dividends, and return of capital, used to calculate capital gains or losses for tax purposes.

Comprehensive financial reform legislation enacted in 2010 to reduce systemic risk and protect consumers after the 2008 financial crisis.

Federal law that sets minimum standards for employee benefit plans, including pensions and health insurance, to protect plan participants.

Federal tax on the transfer of assets from a deceased person. Only applies to estates exceeding $13.61 million (2024) exemption threshold.

U.S. law requiring foreign financial institutions to report information about accounts held by American taxpayers to combat offshore tax evasion.

Independent federal agency that insures bank deposits up to $250,000 per depositor, per institution, and supervises financial institutions for safety and soundness.

A person or entity legally required to act in another's best interest. Financial advisors with fiduciary duty must put your interests first.

A legal obligation to act in the best interest of another party, placing their interests above one's own.

A self-regulatory organization that oversees broker-dealers and their registered representatives in the United States.

A comprehensive annual report filed with the SEC that provides a detailed overview of a public company's financial performance and business operations.

A quarterly report filed with the SEC that provides unaudited financial statements and updates on a public company's operations.

A current report filed with the SEC to announce major events or material changes that shareholders should know about between regular filings.

Federal tax on transfers of money or property during your lifetime. Annual exclusion of $18,000 per recipient (2024) avoids tax.

A 1933 law that separated commercial banking from investment banking to reduce conflicts of interest and protect depositors.

The illegal practice of trading securities based on material, non-public information obtained through a position of trust or confidence.

Regulatory requirement for financial institutions to verify the identity and assess the risk profile of their clients before and during business relationships.

Any information that a reasonable investor would consider important in making an investment decision, and that could affect a security's price.

European Union regulation that enhances transparency, investor protection, and market structure rules across financial markets.

Additional 3.8% tax on investment income for high earners. Applies when modified AGI exceeds $200,000 (single) or $250,000 (married).

A trader who executes four or more day trades within five business days in a margin account, triggering a $25,000 minimum equity requirement.

A formal legal document filed with the SEC that provides detailed information about an investment offering to potential investors.

Dividends that meet IRS requirements and are taxed at the lower long-term capital gains rates (0%, 15%, or 20%) instead of ordinary income rates.

A legally mandated period when a company's communications with the public are restricted, typically before an IPO or around earnings announcements.

An SEC exemption that allows smaller companies to raise up to $75 million from the general public with reduced registration requirements.

SEC rules that provide exemptions from registration requirements, allowing companies to raise capital through private placements.

SEC rule requiring public companies to disclose material information to all investors simultaneously, preventing selective disclosure.

SEC rules that provide exemptions for securities offerings made outside the United States to non-U.S. persons.

SEC rule that sets conditions under which restricted and control securities can be sold in the public market.

A 2002 federal law that established strict corporate governance and financial reporting standards to protect investors from fraudulent accounting.

The primary U.S. federal agency responsible for regulating securities markets, protecting investors, and enforcing federal securities laws.

An SEC provision allowing companies to register securities in advance and sell them to the public over a period of up to three years.

A nonprofit organization that protects customers of failed brokerage firms by recovering cash and securities up to $500,000 per account.

Tax benefit where inherited assets receive a new cost basis equal to fair market value at the time of death, eliminating unrealized capital gains.

Selling investments at a loss to offset capital gains taxes, then reinvesting in similar (but not identical) assets.

A provision of the Dodd-Frank Act that restricts banks from engaging in proprietary trading and limits their investments in hedge funds and private equity.

IRS rule that disallows tax loss deduction if you buy a "substantially identical" security within 30 days before or after selling at a loss.