The 2008 economic crisis was triggered in part by the real estate bubble bursting. Mortgages became extremely easy to obtain, and many of those mortgages had predatory provisions that made it difficult for borrowers to pay off the...
securities
Dodd-Frank: Title XV - Miscellaneous Provisions
Introduction
Title XV contains seven miscellaneous provisions. Title XV restricts the ability of the United States’ Executive Director at the International Monetary Fund to approve loans to foreign countries that are unlikely to be repaid in...
Dodd-Frank: Title XVI - Section 1256 Contracts
Title XVI – Section 1256 Contracts
Title XVI supplements Title VII and modifies Internal Revenue Code (IRC) § 1256 by exempting certain derivative contracts from treatment as § 1256 contracts for taxation purposes. Title VII imposes trading and...
due diligence defense
The due diligence defense is a defense against claims of securities fraud under Section 11 of the Securities Act. The rationale for the due diligence defense is that parties involved in drafting the registration statement who conducted...
emerging growth company (EGC)
Emerging growth company (EGC) is a category of issuer for which the disclosure and gun-jumping regulations are relaxed.
The Jumpstart Our Business Startups (JOBS) Act of 2012 created the category emerging growth companies...
equitable ownership
Equitable ownership, in the context of corporate/commercial law, is a doctrine under which an individual who exercises sufficient control over the corporation may be deemed an equitable owner, notwithstanding the fact that the individual is...
exempt offering
In securities, an exempt offering is an offering for which the issuer does not need to file a registration statement.
See private placement.
[Last updated in February of 2022 by the Wex Definitions Team]...
factor's lien
Factor’s lien is a type of security interest in property that allows agents and sometimes other parties to have their rights secured in property of a principal. This allows factors to recover owed fees and expenses from the secured property...
financial institution
A financial Institution is defined in 18 U.S. Code § 20 as an entity, national or international, that deals primarily in business related to financial or/and monetary transactions, namely loans, deposits, investments, currency exchange, or...
follow-on offering
Follow-on offerings are any public offerings conducted after a company has gone public through an initial public offering (IPO). Also sometimes referred to as “follow-on public offer” or “FPO.”
Companies generally conduct...