Since its inception, the SEC has helped bring stability to an ever-changing market by protecting consumers, maintaining fair markets and ensuring companies are transparent with their financial transactions.

The SEC may conduct investigations to determine whether a violation of federal securities laws has occurred. The SEC has the power to subpoena witnesses, administer oaths, and compel the production of records anywhere in the United States.

The SEC does not have criminal authority but may refer matters to state and federal prosecutors.

Section 16 Officer means every person who is directly or indirectly the beneficial owner of more than ten percent (10%) of any class of any equity security (other than an exempted security) which is registered pursuant to Section 12 of the Securities Exchange Act of 1934.

When a person or group of persons acquires beneficial ownership of more than five percent of a voting class of a company’s equity securities registered under the Securities Exchange Act, they are required to file a Schedule 13D with the SEC.

Institutional investors must file a Schedule 13G within 45 days after the calendar year in which the investor holds more than 5% as of the year end or within 10 days after the end of the first month in which the person’s beneficial ownership exceeds 10% of the class of equity securities computed as of the end of the …

Under Section 13 of the Exchange Act, an investment manager may have an obligation to file reports with the U.S. Securities and Exchange Commission (the SEC) on Schedule 13D, Schedule 13G, Form 13F, and/or Form 13H, each of which is discussed in more detail below.

Section 11 of the Securities Act of 1933, 15 U.S.C. § 77k, provides investors with the ability to hold issuers, officers, underwriters, and others liable for damages caused by untrue statements of fact or material omissions of fact within registration statements at the time they become effective.

The Securities and Exchange Commission (SEC) Schedule 13G form is an alternative filing for the Schedule 13D form and is used to report a party’s ownership of stock which exceeds 5% of a company’s total stock issue.

The Schedule 13D is a required SEC filing for entities acquiring more than 5% of the stock of a public company. It is seen as a signal of an imminent corporate takeover. Significant information in the 13D includes the source of the funds used for the purchase. 1

Form 6K is an SEC filing submitted to the U.S. Securities and Exchange Commission used by certain foreign private issuers to provide information that is: Filed with and made public by a foreign stock exchange on which its securities are traded. Distributed to security holders.

The filing must be made within 10 days of breaking the five percent threshold. The 13D is useful because it can give the average investor the ability to follow the so-called “smart money.” Maybe a billionaire investor known for spotting good opportunities on the cheap is acquiring shares of Company XYZ.

Schedule 13D is considered the long-form beneficial ownership report. Schedule 13G is a beneficial ownership disclosure statement intended for passive investors who own less than 20% of a public company’s outstanding shares. A passive investor does not intend to exert control over or seek any changes in the company.

SEC Form 3: Initial Statement of Beneficial Ownership of Securities is a document filed by a company insider or major shareholder with the Securities and Exchange Commission (SEC). Filing Form 3 helps disclose who these insiders are and track any suspicious behaviors. According to the SEC, disclosure is mandatory.

The Securities and Exchange Commission’s (SEC) Form 13F is a quarterly report that is required to be filed by all institutional investment managers with at least $100 million in assets under management. It discloses their equity holdings and can provide some insights into what the smart money is doing in the market.