Glossary · 10 terms
Regulatory & Compliance
All regulatory & compliance terms in the EquitiesAmerica.com glossary — plain-English definitions for American investors.
Accredited Investor(qualified investor)
An accredited investor is an individual or entity that meets specific financial thresholds set by the SEC and is therefore permitted to invest in private securities offerings that are exempt from standard registration requirements.
Fiduciary Duty(fiduciary standard)
Fiduciary duty is the highest legal standard of care in financial services, requiring that a fiduciary act solely in the best interests of their client rather than in their own interest or the interest of any third party.
FINRA(Financial Industry Regulatory Authority)
FINRA (Financial Industry Regulatory Authority) is a self-regulatory organization that oversees broker-dealers and their registered representatives in the United States.
Form 13F(13F)
Form 13F is a quarterly SEC filing required from institutional investment managers with at least $100 million in qualifying assets, disclosing their long equity positions to the public.
Form 4(insider transaction report)
Form 4 is an SEC disclosure document that corporate insiders — officers, directors, and 10%-or-greater shareholders — must file within two business days of any change in their ownership of company securities.
Insider Trading(MNPI trading)
Insider trading refers to the buying or selling of a publicly traded security based on material, non-public information about that company, a practice that is illegal under U.S. securities law.
Pattern Day Trader(PDT)
A pattern day trader (PDT) is any investor who executes four or more day trades within five business days in a margin account, triggering FINRA rules that require maintaining a minimum account equity of $25,000.
Regulation Fair Disclosure(Reg FD)
Regulation Fair Disclosure (Reg FD) is an SEC rule that prohibits public companies from selectively disclosing material non-public information to favored analysts or investors without simultaneously making that information available to the general public.
Sarbanes-Oxley Act(SOX)
The Sarbanes-Oxley Act of 2002 (SOX) is a landmark U.S. federal law that established sweeping corporate governance and financial disclosure reforms in the aftermath of major accounting scandals including Enron and WorldCom.
SEC (Securities and Exchange Commission)(Securities and Exchange Commission)
The SEC is the primary federal agency responsible for enforcing securities laws, regulating markets, and protecting investors in the United States.