Tag: SEC

You Can’t Afford Not to Spend Money on the Accounting Department

As a former CEO to some CEOs, this Blog is to my counterparts that “don’t know what you don’t know.”  I have seen time and time again closely held businesses that have experienced growth make the same mistakes over and over again. To the CEO that believes bookkeeping is a necessary fixed cost that should be

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Generally Accepted Accounting Principles (GAAP)

See Also: Accrual Based Accounting Modified Accelerated Cost Recovery System MACRS 10 Q Asset History of Accounting Full Disclosure Principle Generally Accepted Accounting Principles (GAAP) Definition Generally Accepted Accounting Principles (GAAP) are a set of standards, guidelines, and regulations for financial accounting. Companies should follow GAAP rules when preparing financial statements. GAAP rules were established

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Securities Exchange Act of 1934

See Also: Secondary Market Securities Act of 1933 New York Stock Exchange (NYSE) Primary Market Sarbanes Oxley Act of 2002 (SOX) Securities Exchange Act of 1934 The Securities Exchange Act of 1934 deals with the regulation of secondary market transactions, or outstanding securities in the market (which can be traded on a daily basis). The Securities and

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Securities and Exchange Commission (SEC)

See Also: New York Stock Exchange (NYSE) Generally Accepted Accounting Principles (GAAP) American Institute of Certified Public Accountants – AICPA Financial Accounting Standards Board (FASB) Full Disclosure Principle Corporate Veil Investment Banks Treasury Stock Accounting Fraud Targeted Securities and Exchange Commission (SEC) Definition The Securities and Exchange Commission (SEC) is a U.S. government agency that

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Secondary Market Definition

See Also: Securities Exchange Act of 1934 Secondary Market Primary Market Securities Act of 1933 New York Stock Exchange (NYSE) Secondary Market Definition A secondary market definition is the trading of already issued securities – the primary market. Furthermore, the Securities Exchange Act of 1934 regulates these securities. Secondary Market Meaning Many know secondary markets

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Private Placement

See Also: Convertible Debt Instrument Common Stock Definition Preferred Stocks Hedging Risk Treasury Stock Private Placement Definition The private placement definition is the process of raising capital directly from institutional investors. A company that does not have access to or does not wish to make use of public capital markets can issue stocks, bonds, or

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Insider Trading

See Also: Blue Sky Laws Subscription (Preemptive) Rights Accounting Fraud Prevention using QuickBooks Binomial Options Pricing Model Black Scholes Option Calculation Insider Trading Defined Insider trading is buying or selling stock based on nonpublic information that will affect the stock’s price. A company’s executives and directors have access to significant information regarding the company’s activities.

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Internal Revenue Service (IRS)

See Also: Cash Flow After Tax Deferred Income Tax Ad Valorem Tax Tax Brackets Tax Efficiency Internal Revenue Service (IRS) Definition The Internal Revenue Service or IRS for short is a government agency underneath the Department of Treasury. Furthermore, it is primarily responsible for administration and collections of federal income taxes. Internal Revenue Service (IRS)

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Full Disclosure Principle

See also: Accounting Principles 5, 6, and 7 Accrual Based Accounting GAAP Rules Generally Accepted Accounting Principles (GAAP) What is GAAP? Full Disclosure Principle Definition As one of the principles in Generally Accepted Accounting Principles (GAAP), the Full Disclosure Principle definition requires that all situations, circumstances, and events that are relevant to financial statement users

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Choose a CPA or Auditor

Choose a CPA or Auditor Do you choose a CPA or auditor? Any company whose stock is sold to the public is subject to the reporting requirements of the Securities & Exchange Commission, which include having its financial statements audited by an independent certified public accountant. Whereas companies, whose stock is not sold to the

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Hedge Funds

See Also Currency Exchange Rates Hedging Risk Currency Swap Transaction Exposure Exchange Traded Funds Hedge Funds Defined What is a hedge fund? A hedge fund is a private investment portfolio that makes aggressive speculative investments. Because hedge funds often have a very high minimum investment requirement, hedge fund investors are typically only institutional investors and

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Financial Instruments

See Also: What is a Bond Required Rate of Return Return on Asset Commercial Paper Hedging Risk Histogram Financial Instruments and Securities Financial instruments are contracts that represent value. They come in many varieties. In fact, financial managers and bankers have a lot of leeway in creating and issuing financial instruments. The Securities and Exchange

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