Securities Fraud Flashcards
Define Conspiracy:
At least two persons make an agreement to do something that is illegal.
Define Junk Bonds
A term coined by Michael Milken to describe low-grade bonds (debt securities) that have high risk and high yield.
Define Kickback
In this lesson, the term means the payment of a portion of money to a person who has facilitated an illegal transaction
What is Microcap Stock
Microcap stock is also known as “over the counter” stock. Microcap companies have “micro” capitalization and may not be required to make filings with the SEC.
What is Penny Stock
Defined by the SEC as any stock that trades for less than $5.00 a share.
What is a Tippee
The person who receives material, nonpublic information concerning a security. Tippees are often friends and family members of the person providing the information (the tipper)
