Background Checks
Background Checks are the process of verifying the legal, financial, and personal records of an individual or an organization. They are commonly performed by employers on potential candidates, but are also a critical step in due diligence processes in financial transactions.
Board Directors
Board Directors are members of a board of directors, the governing body responsible for overseeing the strategic direction and policy of an organization. They make critical decisions about corporate management, major company actions, and financial policies. Board directors are accountable to the shareholders of the company.
Blue Sky Laws
Blue sky laws are state regulations in the United States that aim to protect investors against securities fraud by requiring sellers of new issues to register their offerings and provide financial details. This allows prospective investors to base their judgment on data rather than just the attractiveness of the stock.
Book of Records
Book of Records refers to the official compilation of all financial transactions, stock records, and ledgers within a company. This document is vital for compliance, audits, and financial analysis.
Bad Actor Report
A Bad Actor Report identifies individuals or entities that have been flagged for past transgressions in the securities markets. These reports are critical in due diligence processes, ensuring compliance with regulations that prohibit 'bad actors' from engaging in certain activities.
Beneficiary
A Beneficiary is a person who receives benefits or rights, especially from a will, insurance policy, or any financial instrument like a trust.
Bad Actor
A "bad actor" refers to individuals or entities that are prohibited from participating in certain types of financial activities due to previous violations of securities laws or other financial regulations. This term is often used in the context of securities offerings to describe those who have been legally disqualified from roles in issuing or selling securities.
Book Entry
Book Entry refers to a method of tracking ownership of securities where no physical certificate is issued. Ownership is recorded electronically, which facilitates quicker and more efficient transfer of securities.
Broker-Dealer
A broker-dealer is a person or company that is in the business of buying and selling securities. They act as a broker when they buy or sell securities on behalf of their clients, and as a dealer when they buy or sell securities for their own account.
