| Reliance on Third-Party Advice or Information |
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| The duty of care requires directors to act in good faith and in a manner that they reasonably believe is in the best interest of the corporation. Directors must exercise informed business judgment and be attentive to the corporation's affairs. In order to do so, directors are required to keep themselves informed of all material information that is reasonably available to them before making a business decision. Directors also must use care when performing their duties. More... |
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| SIPC Protection for Investors |
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| Investors who engage in securities transactions through a brokerage firm that is a member of the Securities Investor Protection Corporation (or SIPC) receive protection for cash and securities held by the brokerage firm for the accounts of the investors. The SIPC covers up to $500,000 in losses of such cash and securities per investor with a $100,000 limit on the amount of cash in an account that is covered. More... |
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| Continuity of Existence in Choosing a Form of Business Organization |
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| Continuity of existence is an important factor in choosing the structure of a business. The value of a business when viewed as a continuing or "going" concern is likely to be considered higher than the same business if it is being dissolved and its value is being distributed. More... |
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| Registration of a Public Offering with the Securities and Exchange Commission |
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| A company that decides to sell its stock to the public must file a registration statement with the Securities and Exchange Commission. The registration statement is made public as it is filed. However, the company may not sell its securities described in the registration statement until staff of the Commission has declared that the registration statement is effective. More... |
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| An Introduction to the Securities Exchange Act of 1934 |
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| In response to the stock market crash of 1929, Congress enacted the Securities Act of 1933 and the Securities Exchange Act of 1934. While the Securities Act governed the issuance of securities, the Securities Exchange Act regulated trading in the securities. More... |
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