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Limitations on Margin Trading

Margin trading in securities is the use of borrowed funds to pay in part for the purchase of the securities. Margin trading is regulated by the Federal Reserve Board and by self-regulatory organizations such as the New York and...

Ultra Vires Acts

In most states, the duty of obedience is recognized as one of the three fiduciary duties a director owes to the corporation. One component of the duty of obedience is that a director is prohibited from committing an...

Criminal Liability of Corporate Officers

Under Section 807 of The Sarbanes-Oxley Act of 2002 (Act), any person who knowingly commits securities fraud is subject to a hefty fine, a prison term of up to 25 years, or both. Section 807 does not criminalize...

Continuity of Existence in Choosing a Form of Business Organization

Continuity of existence is an important factor in choosing the structure of a business. The value of a business when viewed as a continuing or "going" concern is likely to be considered higher than the same business if it is being dissolved and...

The Rule 504 Exemption From Registration Requirements For Small Securities Offerings

Prior to offering and selling its stock to the public, a company normally must prepare and file with the Securities and Exchange Commission a detailed registration statement containing a prospectus with audited financial statements for...