An investor is “locked out” when they are unwilling or unable to trade securities due to regulations, taxes or penalties that prevent it from being profitable or make it illegal.
Shares, options and warrants offered under employee incentive programs, which normally have a mandatory vesting period, may be blocked.
Shares issued in initial public offerings are often subject to rules designed to prevent company insiders from gaining an unfair trading advantage.
The 2,000 investor limit or rule is a key threshold for private businesses that are unwilling to disclose financial information for public consumption.
The 500 shareholder threshold was a rule set by the SEC that required companies to publicly disclose financial statements and other information if they reached 500 or more individual shareholders.
The Basel Accords are part of a series of three international banking regulatory meetings that established capital requirements and risk measurements for global banks.
Basel III is an international regulatory agreement that introduced a series of reforms aimed at improving regulation, supervision and risk management in the banking sector.
Black money includes all funds earned as a result of illegal activities, as well as other legitimate income that is not taken into account for tax purposes.
A boiler room is a scheme in which sellers use high-pressure selling tactics to persuade investors to buy securities, including speculative and fraudulent securities.