Blue sky laws are state securities regulations. That is, in addition to federal securities regulations, mainly the Securities Act of 1933 and the Exchange Act of 1934, states may also require issuers of securities to register with their state...
securities
bucket shop
Bucket shop refers to either a brokerage firm that illegally retains funds in a transaction or a historical enterprise that offers betting on stocks and futures without any underlying trading.
In the modern context, bucket...
buy-sell agreement
Buy-sell agreements are limits placed on ownership rights of closely-held organizations which require the shares be resold to either the organization or current partners when the owner decides to leave or passes away. Many partnerships and...
buyback
A buyback refers to when a corporation repurchases its own outstanding stock. By doing so, the number of overall shares in the market drops and the value of each individual share tends to increase. Issuing a buyback offer is not binding on...
C corporation
A C corporation is any corporation that does not qualify or elect to be an S corporation under the Internal Revenue Code. A C corporation is a legal structure for a corporation where the company’s assets are separate from the owners’ assets....
call option
A call option (often shortened to call) is a contract that allows its owner to buy an asset or service from the seller at a certain price until a certain date. The buyer never has to purchase the assets, and the option will terminate at the...
cap
A cap is a set limit on some form of income, interest, fees, loan, or benefit. Examples of caps:
A loan can have varying interest rates based on the market, but the loan can have a maximum or cap rate of interest. Businesses can set a...capital gains
Capital gains refers to profits gained from the sale of capital assets. Almost everything someone owns and uses for personal or investment purposes is a capital asset. This includes a home, personal-use items like household furnishings,...
capital stock
Capital stock, also known as authorized stock, refers to all common stock and preferred stock a corporation is legally allowed to issue. A corporation’s charter establishes the amount of shares the corporation may issue, and the board of...
capitalization
Capitalization has different meanings, referring to the allocation of costs in tax and accounting contexts and to capital structures in the corporate context.
In tax and accounting, capitalization allows costs to be...