As Wall Street lawyer Aegis Frumento sees it, we don't really understand why we don't like insider trading as a thing in itself. Also, Frumento notes that any insider trading statute can be gamed, and the more precise it is drafted, the more loopholes it creates. Which may explain the Houston Astros' approach to winning a World Series.
In today's featured case, we have a dispute involving a customer's sales of shares of microcap Cannabis Science, Inc. One court says the customer ain't a customer. On appeal, another court says he is. Put that in your bong and smoke it! To say that this is a case that goes up in smoke but then gets re-lit wouldn't be too far from the truth.
It's a very risky proposition for a brokerage firm to accept purchase orders from a customer without sufficient funds on hand or covering margin equity -- and if a customer only has a Cash Account, then margin would not be an option. In two recent FINRA Arbitrations, brokerage firm Ustocktrade sought damages after two customers failed to deposit sufficient funds to cover securities purchases. Those debits raise lots of questions about the customers' intentions and the industry's compliance and regulatory practices.
In recent weeks, the press has been awash with stories about payment for order flow. You've seen it pop up in all its sordid glory via revelations abo... Read On
Whatever you do, don't lie to FINRA. I can't even begin to recount the number of times that I have given that admonition to a client. You wouldn't thi... Read On
BrokeAndBroker.com Blog publisher, Bill Singer, is no fan of Wall Street's version of self regulation, as spearheaded by the Financial Industry Regula... Read On
The Saga of FINRA Versus Kimberly Springsteen-Abbott(2015 - 2021 -- and maybe not done yet)FINRA placed Kimberly Springsteen-Abbott squarely in its re... Read On
GUEST BLOG: COVID-19's Impact on Financial Advisors / How the Pandemic is Changing the Way Advisors Work by Michael King of Michael King Associates (B... Read On
If there's one thing that's certain about the COVID-19 pandemic, it's that it has changed the way we work and interact with one another. From virtual ... Read On
Someone lost about $100 from a Bank of America drive-up ATM. Someone found it. That first finder wasn't a keeper. That first finder gave the $100 to a... Read On