The SEC attacks abuses in the use of Form S-8 registration statement

Article Abstract:

The SEC in February 1998 proposed amendments to Form S-8 to prevent so-called microcap securities fraud. Microcap refers to securities transactions involving the stock of companies with small capitalization. Many such companies used Form S-8's exemption of their stock from registration when it is used to pay consultants improperly to promote the stock. The amendments would stop this abuse by restricting the availability of Form S-8 registration.

Small business, Business consultants, Management consultants, Securities fraud

---

Application of Rule 144(k) by analogy to "nonrestricted" securities

Article Abstract:

SEC rule 144(k) applies to the public sale of securities owned by "affiliates" and to the public sale of "restricted securities" as defined in 144(a)(3). The SEC allows securities to be treated as restricted securities even though they do not meet the requirements of 144(k) in two situations: when the affiliate makes a gift of the securities to a non-affiliate and when the securities form a bona fide pledge.

Interpretation and construction, Securities law

---

Re-visiting the question: must a broker-dealer securities firm use another broker-dealer securities firm in selling its own restricted securities under Rule 144

Article Abstract:

The SEC interprets its Rule 144 to prohibit a securities brokerage firm from actings as its own selling broker. A securities firm must instead use another broker-dealer firm to sell its own restricted securities. Nor may a securities broker-dealer sell its restricted securities to itself as a market maker, but once again must employ another firm as an intermediary.

Securities dealers, Securities industry

Similar abstracts:

• Abstracts: Track the status of loans. Generation next
• Abstracts: The benefits broker in the marketplace: self-funding of group insurance benefits. Employee benefit planning
• Abstracts: The SEC acts to slam the door or Regulation S abuses. The SEC acts to slam the door on Regulation S abuses. The SEC attacks abuses in the use of Form S-8 registration statement
• Abstracts: Power of attorney justifies disclosure of return information. 'Responsible person' can have drug addiction
• Abstracts: The year 2000 problem: a technological time bomb. SEC and NASD releases, no-action letters and other pronouncements

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.