Newsletters

Qualification Examinations for Persons in the Securities Industry

Persons who wish to enter the securities industry to sell or trade securities must pass an initial examination in order to be eligible to register with a self-regulatory organization such as the New York or American Stock Exchanges or Nasdaq.

Business Judgment Rule

The business judgment rule protects a director(s) from personal liability if he or she has performed diligently and carefully in legitimate furtherance of corporate objectives and purposes and has not acted fraudulently, illegally, or otherwise in bad faith. The business judgment rule may be codified, but it is largely a matter of judicial interpretation and application. The business judgment rule is frequently invoked in shareholder damage suits against a director or board of directors. Courts generally acknowledge that the business judgment rule either does or may apply to corporate officers.

Off-Exchange Foreign Currency Trading

Trading in foreign currency futures and options contracts by retail customers outside of an organized exchange is unlawful unless the party offering the futures and options contracts is a regulated entity described in the Commodity Exchange Act enforced by the Commodity Futures Trading Commission.

Multi-Class Mutual Funds

Multi-Class Mutual Fund

An Introduction to the Securities Exchange Act of 1934

In response to the stock market crash of 1929, Congress enacted the Securities Act of 1933 and the Securities Exchange Act of 1934. While the Securities Act governed the issuance of securities, the Securities Exchange Act regulated trading in the securities.