Corporatocracy is an economic,political and judicial system controlled by business corporations or corporate interests.
Insider trading is the trading of a public company's stock or other securities based on material,nonpublic information about the company. In various countries,some kinds of trading based on insider information are illegal. This is because it is seen as unfair to other investors who do not have access to the information,as the investor with insider information could potentially make larger profits than a typical investor could make. The rules governing insider trading are complex and vary significantly from country to country. The extent of enforcement also varies from one country to another. The definition of insider in one jurisdiction can be broad and may cover not only insiders themselves but also any persons related to them,such as brokers,associates,and even family members. A person who becomes aware of non-public information and trades on that basis may be guilty of a crime.
The U.S. Securities and Exchange Commission (SEC) is an independent agency of the United States federal government,created in the aftermath of the Wall Street Crash of 1929. The primary purpose of the SEC is to enforce the law against market manipulation.
An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investment banks,who also arrange for the shares to be listed on one or more stock exchanges. Through this process,colloquially known as floating,or going public,a privately held company is transformed into a public company. Initial public offerings can be used to raise new equity capital for companies,to monetize the investments of private shareholders such as company founders or private equity investors,and to enable easy trading of existing holdings or future capital raising by becoming publicly traded.
The Sarbanes–Oxley Act of 2002 is a United States federal law that mandates certain practices in financial record keeping and reporting for corporations. The act,,also known as the "Public Company Accounting Reform and Investor Protection Act" and "Corporate and Auditing Accountability,Responsibility,and Transparency Act" and more commonly called Sarbanes–Oxley,SOX or Sarbox,contains eleven sections that place requirements on all U.S. public company boards of directors and management and public accounting firms. A number of provisions of the Act also apply to privately held companies,such as the willful destruction of evidence to impede a federal investigation.
Investment banking pertains to certain activities of a financial services company or a corporate division that consist in advisory-based financial transactions on behalf of individuals,corporations,and governments. Traditionally associated with corporate finance,such a bank might assist in raising financial capital by underwriting or acting as the client's agent in the issuance of debt or equity securities. An investment bank may also assist companies involved in mergers and acquisitions (M&A) and provide ancillary services such as market making,trading of derivatives and equity securities,FICC services or research. Most investment banks maintain prime brokerage and asset management departments in conjunction with their investment research businesses. As an industry,it is broken up into the Bulge Bracket,Middle Market,and boutique market.
Corporate governance are mechanisms,processes and relations by which corporations are controlled and operated ("governed").
A controlling interest is an ownership interest in a corporation with enough voting stock shares to prevail in any stockholders' motion. A majority of voting shares is always a controlling interest. When a party holds less than the majority of the voting shares,other present circumstances can be considered to determine whether that party is still considered to hold a controlling ownership interest.
Securities fraud,also known as stock fraud and investment fraud,is a deceptive practice in the stock or commodities markets that induces investors to make purchase or sale decisions on the basis of false information. The setups are generally made to result in monetary gain for the deceivers,and generally result in unfair monetary losses for the investors. They are generally violating securities laws.
A proxy statement is a statement required of a firm when soliciting shareholder votes. This statement is filed in advance of the annual meeting. The firm needs to file a proxy statement,otherwise known as a Form DEF 14A,with the U.S. Securities and Exchange Commission. This statement is useful in assessing how management is paid and potential conflict of interest issues with auditors.
Gary Gensler is an American government official and former Goldman Sachs investment banker serving as the chair of the U.S. Securities and Exchange Commission (SEC). Gensler previously led the Biden–Harris transition's Federal Reserve,Banking,and Securities Regulators agency review team. Prior to his appointment,he was professor of Practice of Global Economics and Management at the MIT Sloan School of Management.
Share repurchase,also known as share buyback or stock buyback,is the re-acquisition by a company of its own shares. It represents an alternate and more flexible way of returning money to shareholders. When used in coordination with increased corporate leverage,buybacks can increase share prices.
Staggered elections are elections where only some of the places in an elected body are up for election at the same time. For example,United States senators have a six-year term,but they are not all elected at the same time. Rather,elections are held every two years for one-third of Senate seats.
The Dodd–Frank Wall Street Reform and Consumer Protection Act,commonly referred to as Dodd–Frank,is a United States federal law that was enacted on July 21,2010. The law overhauled financial regulation in the aftermath of the Great Recession,and it made changes affecting all federal financial regulatory agencies and almost every part of the nation's financial services industry.
In the United States,the compensation of company executives is distinguished by the forms it takes and its dramatic rise over the past three decades. Within the last 30 years,executive compensation or pay has risen dramatically beyond what can be explained by changes in firm size,performance,and industry classification. This has received a wide range of criticism leveled against it.
Walter Joseph "Jay" Clayton III is an American attorney who served as the chairman of the U.S. Securities and Exchange Commission from May 4,2017 until December 23,2020. He was nominated for the position by President Donald Trump.
Bradley J. Bondi is an American lawyer,law professor,and partner at Paul Hastings LLP,where he is the Global Co-Chair of the firm's Investigations and White Collar Defense practice. He has also served on the executive staff of the Securities and Exchange Commission (SEC) and was appointed to the Financial Crisis Inquiry Commission (FCIC) in the wake of the 2007-2008 financial crisis to investigate its causes.
Hester Maria Peirce is an American lawyer who serves as a Commissioner on the Securities and Exchange Commission (SEC). She previously served as the director of the Financial Markets Working Group at George Mason University's Mercatus Center. Peirce was confirmed by the United States Senate in December 2017 to fill a Republican vacancy on the SEC. She was sworn in on January 11,2018,for a term ending in 2020,and her second term expires in 2025. Peirce is a former staff member of the United States Senate Committee on Banking,Housing,and Urban Affairs and of the SEC. In 2016,she was nominated by President Barack Obama for Commissioner on the SEC,but the United States Senate did not act on her nomination.
Roberta Sarah Karmel is an American attorney and the Centennial Professor of Law,and Co-Director of the Center for the Study of International Business Law,at Brooklyn Law School. She was the first female Commissioner of the Securities and Exchange Commission.
Joshua Mitts is an American legal scholar. He is associate professor of law and Milton Handler Fellow at Columbia Law School. He is known for his research into short activism and its alleged market abuses.
