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Investment Clubs

Groups of individuals may form partnerships or other organizations in which they pool investment resources and ideas. The extent to which a membership in the club might be considered a security and the extent to which members of the club...

Stock and Commodity Exchange Volatility Controls

Stock exchanges such as the New York and American Stock Exchanges and trading facilities such as Nasdaq are considered self-regulatory organizations under federal securities laws. To reduce volatility, securities and commodities markets have...

Sarbanes-Oxley Act of 2002

In response to a deluge of corporate scandals in the late 1990s and early 2000s, the Sarbanes-Oxley Act of 2002 (Act) implemented sweeping reforms in the area of corporate governance. The Act applies only to public...

Duty of Loyalty

Ratification of Self-Interested Director Transactions

Directors may be vulnerable to a claim of breach of the duty of loyalty if they transact personal business with the corporation or if the...

Tracking or Targeted Stocks

In addition to common stock, companies may issue what is known as tracking or targeted stock. For example, a large automaker that acquires a company in the computer industry may issue a tracking stock that tracked the performance of the acquired...