A corporate takeover occurs when the controlling interest in a corporation shifts from one party to another. Corporate takeovers are categorized as either hostile or friendly depending on whether the management of the company being taken over is a willing participant or not.
A corporation is an entity that acts as a single, fictional person. Much like an actual person, a corporation may sue, be sued, lend, and borrow. Additionally, a company which has been incorporated can easily transfer ownership through stock sales and exist indefinitely.
Corruption is the dishonest, fraudulent, or criminal use of entrusted authority or power for personal gain or other unlawful or unethical benefits.
Counsel and procure are forms of accomplice activity.
A covered option occurs when a party offers an options contract while also owning the underlying asset.
A party who sells an option is selling the buyer the right, but not the obligation, to buy or sell an asset at a given price (known as the strike price), until some date in the future.
Credit card fraud is a form of identity theft that involves an unauthorized taking of another’s credit card information for the purpose of charging purchases to the account or removing funds from it. Federal law, by way of 15 U.S.C. §1643, limits cardholders’ liability to $50 in the event of credit card theft, but most banks will waive this amount if the cardholder signs an affidavit explaining the theft.
A credit default swap (CDS) is a type of derivative contract in which two parties exchange the risk that some credit instrument will go into default. The buyer of a CDS agrees to make periodic payments to the seller. In exchange, the seller agrees to pay a lump sum to the buyer if the underlying credit instrument enters default.
A credit instrument is a promissory note or other written evidence of a debt. In other words, when someone borrows money from another person, signing a credit instrument allows this debt relationship to be clarified in writing, such as how much money owed, when to pay back the money owed, and the details of the borrower and lender.
The Customer Protection Rule, also known as SEC Rule 15c3-3, is a regulation designed to safeguard the funds and securities of customers held by broker-dealers.
