Free-riding and Withholding Interpretation being replaced? By John M. Baker, Esq. NASD Regulation posted the second amendment to its SEC rule filing on proposed Rule 2790, Restrictions on the Purchase and Sale of Initial Equity Public Offerings. Proposed Rule 2790 is intended to replace the existing Free-Riding and Withholding Interpretation, […]
Search Results for ""
SEC Approves Liberalized Listing Standards for MFQS
Changes for Mutual Fund Quotation Service Approved By John M. Baker, Esq. October 13, 2000 – The SEC today published in the Federal Register its approval of the Nasdaq’s liberalized listing standards for the Mutual Fund Quotation Service. Release No. 34-42417, 65 Fed. Reg. 61,012 (Oct. 5, 2000). The […]
SEC Sues over Internet “pre-IPO” offering
The Securities and Exchange Commission announced that on September 14, 2000, it filed a civil lawsuit against 1stBuy.com, Inc. (1stBuy) and its founder and CFO, Roger D. Pringle. The SEC’s action pertains to a pre-ipo offering, an Internet stock offering conducted by 1stBuy during 1999 and early 2000 in which […]
GAO Report on Blue Sky Revenue Released
Blue Sky Filings Become a Cash Cow By John M. Baker, Esq. Blue sky filings are quite the cash cow, according to a recent General Accounting Office report. Expenditures and Revenues of State Securities Regulatory Agencies, No. GAO/GGD-00-189R (Aug. 15, 2000). For example, in 1999 the 46 jurisdictions reporting usable […]
LAW REVIEW: BREWING TROUBLE?
INTERNET OFFERINGS CAN RESULT IN A DOUBLE WHAMMY: AN IPO BY INEXPERIENCED BROKERS IN A COMPANY WITH NO FUNDAMENTALS By now, you’re probably aware of Spring Street Brewing’s successful initial public offering completed last year. The company conducted a self-underwriting almost entirely on the Internet and then commenced trading of its securities on its Internet World […]
Lease/Back, Buy/Back Agreements
Lease/Back and Buy/Back Agreements Constitute Securities By Mark J. Astarita, Esq. The Securities and Exchange Commission (“Commission”) announced that on August 2, 2000, it filed a civil lawsuit with an application for a temporary restraining order against Phoenix Telecom, L.L.C. (“Phoenix”) and Jerold Benjamin Clawson (“Clawson”) and other emergency […]
Internet Promoters Settle Anti-Touting Case
By Mark J. Astarita, Esq. On July 17, 2000 the SEC announced that it filed a civil complaint against an internet company and its officer. In addition to fraud charges, the SEC alleged that the defendants engaged in scalping for selling the security they were recommending while making the recommendation […]
NASD Release on Unregistered Persons and Client Contact
NTM 00-50 Drops 1998 Proposal, Re-affirms NTM 88-50 By John M. Baker, Esq. The NASD posted a Notice to Members concerning marketing activities and supervision of unregistered persons. NASD Notice to Members 00-50 (August 2000). The Notice withdraws a pending rule proposal and provides guidance on the activities of unregistered […]
GAO Report on Mutual Fund Fees Released
Makes Recommendations for Improved Disclosure By John M. Baker, Esq. The General Accounting Office released its long-awaited, and long (132 PDF pages), report on mutual fund fees. GAO, Mutual Fund Fees: Additional Disclosure Could Encourage Price Competition, No. GAO/GGD-00-126 (June 2000). The report notes that most investors have focused on […]
Implied Right of Action under 36(a) of the 1940 Act?
In an amicus brief, the SEC says yes By John M. Baker, Esq. The SEC has filed a brief amicus curiae in which it took the position that an implied private right of action exists under section 36(a) of the 1940 Act for investment companies as well as individual shareholders. […]
