What Is Regulation M? Regulation M, also known as Subchapter M, is an Internal Revenue Service (IRS) regulation that allows regulated investment companies to pass taxes from capital gains, dividends, and interest distributions onto individual investors. Regulation M conforms to the conduit theory, which states that investment firms should pass capital gains, interest, and dividends to shareholders
What Is Regulation N? Regulation N is a rule established by the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC) that enforces compliance with the Credit Card Accountability and Responsibility and Disclosure Act of 2009 (CARD Act) and the Dodd-Frank Wall Street Reform and Consumer Financial Protection Act of 2010 (Dodd-Frank Act). Key Takeaways Regulation N
What Is Regulation NMS? Regulation National Market System (NMS) is a set of rules passed in 2005 by the Securities and Exchange Commission (SEC) that sought to refine how all listed U.S. stocks are traded. The intention was to boost transparency, by improving the displaying of quotes and access to market data, and basically ensure
What Is Regulation O? Regulation O is a Federal Reserve regulation that places limits and stipulations on the credit extensions a member bank can offer to its executive officers, principal shareholders, and directors. The regulation is designed to prevent bank directors, trustees, executive officers, or principal shareholders (“insiders”) from benefiting from favorable credit extensions. Key
What Is Regulation P? Regulation P (Privacy of Consumer Financial Information) is one of the regulations set forth by the Federal Reserve, the central banking system of the U.S, that governs the treatment of a consumer’s private and personal information by banks and other financial institutions. Key Takeaways Regulation P (Privacy of Consumer Financial Information)
What Is Regulation Q? Regulation Q is a Federal Reserve Board (FRB) rule that sets “minimum capital requirements and capital adequacy standards for board regulated institutions” in the United States. Regulation Q was updated in 2013 in the aftermath of the 2007–2008 financial crisis and continues to go through changes. Key Takeaways The original rule
What Is a Refinance Wave? A refinance wave occurs when a shift in interest rates prompts homeowners to refinance their mortgages in increased numbers. While there is no specific metric for determining what constitutes a wave, financial analysts studying real estate markets may watch for signs of a refinance wave when short-term interest rates change.
What Is Refinancing Risk? Refinancing risk refers to the possibility that an individual or company would not be able to replace a debt obligation with new debt at a critical time for the borrower. Your level of refinancing risk is strongly tied to your credit rating. To avoid refinancing risk, lenders place great value on
What Is Reflexivity? Reflexivity in economics is the theory that a feedback loop exists in which investors’ perceptions affect economic fundamentals, which in turn changes investor perception. The theory of reflexivity has its roots in sociology, but in the world of economics and finance, its primary proponent is George Soros. Soros believes that reflexivity disproves
What Is Re-Fracking? Re-fracking is an oil company practice of returning to older shale-oil and shale-gas wells, fracked in the recent past, but which are no longer in production. The company hopes to use new, more effective, extraction technologies to revitalize and capitalize on the well’s resources. Re-fracking can be useful on those deposits where the shale produces low yields, as it
