affiliate definition exchange act
Primary requirements include registration of any securities listed on stock exchanges, disclosure, proxy solicitations and margin and audit requirements. From this act the Securities Exchange Commission (SEC) was created. The SEC's responsibility is to enforce securities laws. Additionally, the Threat Reduction Act separately requires disclosure of contracts, transactions and dealings with Iranian and other foreign entities by companies that are required to file annual or quarterly reports under Section 13(a) of the Securities Exchange Act of 1934 (the  Exchange Act ). On December 4, 2012, the staff of the SEC's Division of Corporation Finance published compliance and disclosure interpretations (the  C&DIs ) related to the new disclosure requirements. According to the C&DIs, the disclosures will be required without regard to the actual filing dates of the Exchange Act reports. Even if an issuer files its report before February 6, 2013, the disclosure requirements apply if the due date of the report is after February 6, 2013. Affiliate Defined. BREAKING DOWN 'Securities Exchange Act Of 1934'. All companies listed on stock exchanges must follow the requirements set forth in the Securities Exchange Act of 1934. The definition of affiliate and control under the federal securities law is broader than that used under Section 218. An affiliate could be a company or joint venture in which a public company owns a less-than majority interest. Definition. Provides that officers, directors, and shareholders holding shares worth 10 percent or more of a corporation’s stock must pay to the corporation any profits they make from buying and selling the corporation’s stock within a six-month period. Do traders, market makers, specialists or others ever deliberately drive a stock's ... Many individual investors have had the experience of closing their position in a stock only to see the price rebound moments ... Control is defined under Exchange Act Rule 12b-2 to mean the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract or otherwise. The Securities Exchange Act of 1934 was created to provide governance of securities transactions on the secondary market (after issue) and regulate the exchanges and broker-dealers in order to protect the investing public. An “affiliate” of, or a person “affiliated” with, a specified person, is a person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the person specified.
A specified person, is a person that directly, or indirectly through one or more intermediaries, controls or is controlled by, or is under common control with, the person specified.