Establishing a Corporation
Most corporations are organized under the laws of one of these.
What are states?
These elect the directors and can amend the bylaws.
Who are the shareholders?
Federal securities laws do not apply if this percentage of the shareholders reside in one state.
What is 100%?
This act regulates exchanges of stock after the original issue.
What is the Securities Exchange Act of 1934?
This Commission regulates disclosures, investigates fraud, and monitors markets.
What is the Securities and Exchange Commission?
This will name the corporation, set out its purpose, and identify the number of shares it may issue.
What is the corporate charter?
A corporation has its own liabilities, owns property, and can sue or be sued because legally it is this.
What is a separate entity?
Trades by insiders are subject to recapture if they occur within this number of months of a major change.
What is six -- six months?
This act regulates original offers of stock only.
What is the Securities Act of 1933?
Both the original offer of securities and this are heavily regulated.
What is the subsequent exchange?
Charities are organized as this type of corporation.
What is non-profit?
These manage the corporation's business on a day-to-day basis.
Who are the corporate officers?
Corporations have all of the rights extended to individuals through this amendment.
What is the 14th Amendment?
This post-2008 act addresses board governance and auditor independence.
What is the Sarbanes-Oxley Act?
Insider trading is trading by people who possess information not available to this.
What is the general public?
A corporation authorized by the state is known as this within the state.
What is a domestic corporation?
These set corporate policy and hire the day-to-day leadership for the corporation.
Who are the directors (members of the Board of Directors)?
After getting approval to exist, a corporation must obtain this number.
What is the tax identification number?
The purpose of federal securities laws is to ensure that investors have this.
What is information needed to make investment decisions?
Directors, officers, and shareholders with ten percent or more of the stock are all considered these.
What are insiders?
The liability of the owners of a corporation is usually limited to this.
What is the amount of their investment?
The two common forms of capital for a corporation.
What are equity and debt (or stocks and bonds)?
A person owning this percentage of stock must disclose that ownership stake and report any trades in it.
What is ten percent?
Mutual funds and other investment devices are governed by this act.
What is the Investment Act of 1940?
Corporate outsiders who trade on information they receive from insiders are subject to the rules against this.
What is insider trading?