What Is Rule 10b-5? Rule 10b-5 is a regulation created under the Securities and Exchange Act of 1934 that targets securities fraud. This rule makes it illegal for anybody to directly or indirectly use any measure to defraud, make false statements, omit relevant information, or otherwise conduct business operations that would deceive another person in the
What Was Rule 10b-6? Rule 10b-6 was an anti-manipulation rule set forth by the Securities and Exchange Commission (SEC) that prohibited the purchase of stock by an issuer when the stock had not completed distribution. Rule 10b-6 was designed to prevent issuers from tampering with the market by bidding for shares before they were publicly
What Is the Rule of 72? The Rule of 72 is a quick, useful formula that is popularly used to estimate the number of years required to double the invested money at a given annual rate of return. Alternatively, it can compute the annual rate of compounded return from an investment given how many years
What Is the Rule of 78? The Rule of 78 is a method used by some lenders to calculate interest charges on a loan. The Rule of 78 requires the borrower to pay a greater portion of interest in the earlier part of a loan cycle, which decreases the potential savings for the borrower in
What is a Rule Of Thumb? A rule of thumb is a heuristic guideline that provides simplified advice or some basic rule-set regarding a particular subject or course of action. It is a general principle that gives practical instructions for accomplishing or approaching a certain task. Typically, rules of thumb develop as a result of
What are the Rules of Fair Practice The Rules of Fair Practice is a code of conduct for U.S. broker-dealers that requires loyalty to and fair dealing with customers. Developed by the National Association of Securities Dealers and now administered by the Financial Industry Regulatory Authority (FINRA), the Rules of Fair Practice provide detailed guidelines
What Is Runoff Insurance? Runoff insurance is an insurance policy provision that covers claims made against companies that have been acquired, merged, or have ceased operations. Runoff insurance, also known as closeout insurance, is purchased by the company being acquired and indemnifies—exempts from liability—the acquiring company from lawsuits against the directors and officers of the acquired
What Is a Run on the Fund? A run on the fund is a situation in which a hedge fund, or other asset pool, faces a growing number of requests for redemptions from investors. A run on the fund may happen for several reasons, but is usually the result of poor performance of underlying assets. This
What Is the Russell 1000 Index? The Russell 1000 Index is a stock market index used as a benchmark by investors. It is a subset of the larger Russell 3000 Index and represents the 1000 top companies by market capitalization in the United States. The Russell 1000 is owned and operated by FTSE Russell Group
What Is the Russell Midcap Index? The Russell Midcap Index is a market capitalization-weighted index comprised of 800 publicly traded U.S. companies with market caps of between $2 and $10 billion. The 800 companies in the Russell Midcap Index are the 800 smallest of the 1,000 companies that comprise Russell 1000 Index. The Russell 1000
