According to Business Insider, the Securities and Exchange Commission is stepping up scrutiny of mutual fund investments in private companies, according to people with knowledge of the agency’s interest. Questions: What has been the problem with mutual funds investing in companies like Airbnb or WeWork? Which case is notorious for spiking the SEC’s interest in… Read more »
Posts Tagged: SEC
Bitcoin Investment Fads
According to Bloomberg.com, Bitcoin began the week on a down note, declining as much as 8.7 percent and pushing the biggest cryptocurrency’s decline for March to about 25 percent. Questions: 1. Who has confirmed that it will ban Bitcoin offering advertisements? 2. How is the SEC involved with Bitcoin in recent weeks? 3. Why have… Read more »
Investing In the Name of Christian Values?
Two new exchange-traded funds offer a “biblically responsible” investing approach by explicitly saying in their regulatory filing that they will avoid buying shares in companies that have “any degree of participation in activities that do not align with biblical values.” According to the New York Times, this includes what they call the lesbian, gay, bisexual… Read more »
Warren Buffet talks about Wells Fargo
Wells Fargo used to brag about its immense “cross-selling” skills, boasting of the many checking accounts, ATM cards and other “products” it pushed on Americans. Questions: 1. What disclosure did Wells Fargo recently include in its most recent quarterly earnings report? 2. What was the fine that was levied against Wells Fargo in September? 3…. Read more »
Here we Go Again? Another Enron?
Short-seller and hedge fund manager, Jim Chanos, contends that the Alibaba Group is as problematic in its accounting positions as the now-defunct, corrupt energy giant, Enron. Questions: 1. What part of the company’s operations are most problematic and why? 2. What does cash flow have to do with this story? 3. What does Chanos claim… Read more »
Say it ain’t so, Phil.
Professional golfer Phil Mickelson was recently named in an SEC complaint regarding insider trading information that he received from William Walters, a sports gambler. Questions: 1. During what period did the insider trading take place? 2. Phil has been named as a “relief defendant.” What does that mean? 3. What shares did Phil buy and… Read more »
Fantasy Accounting?
According to the New York Times, a recent study shows that 90 percent of companies in the Standard & Poor’s 500-stock index reported non-GAAP results last year, which is up from 72 percent in 2009. Questions: 1. Do you think investors truly understand the consequences of this? 2. Which one of the tactics used do… Read more »
Bye, Bye to Tens of Thousands of Dollars of Debt for a Certificate
Despite intensive lobbying efforts and lawsuits by the Association of Proprietary Colleges (APC), a U.S. District federal judge denied a challenge to the Obama administration’s rules limiting the amount of debt students can carry in career-training programs. This decision delivers a blow to the deteriorating for-profit college industry. Questions: 1. What are the new rules… Read more »
Let the Punishment Fit the Crime
The Mikado explains his ambition of letting the punishment fit the crime in Gilbert and Sullivan’s classic work. The Mikado’s song could be the new theme song of the Securities and Exchange Commission, if dissenting commissioners prevail. The debate over a “one size fits all” penalty for misconduct is at the heart of what defines… Read more »
Congressional Insider Trading?
Nineteen months ago, with only 20 minutes remaining in the trading day, a Washington-based broker-dealer, Height Securities, blasted out a “flash report” to nearly 200 clients, including hedge funds on Wall Street that predicted a raise in Medicare reimbursement rates. This sent many health insurance companies’ stocks soaring. Regulators are now trying to investigate insider… Read more »