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Simple English definitions for legal terms

Investor Protection Guide: Auction Rate Securities

Read a random definition: per incuriam

A quick definition of Investor Protection Guide: Auction Rate Securities:

Auction rate securities (ARS) are investments that promise a high yield, similar to a certificate of deposit (CD) or money market fund. However, they are actually long-term variable rate debt with interest payments determined through auctions. This means that when interest rates rise, so does the risk and volatility of the investment. In 2008, the auction market for ARS collapsed, leaving investors unable to sell their securities. The ARS market is now mostly inactive. It is important for investors to understand the risks associated with ARS before investing.

For more information, visit the Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) websites.

A more thorough explanation:

Auction rate securities (ARS) are investments that were marketed as safe and high-yielding alternatives to CDs or money market funds. They are debt or preferred equity securities that have their interest rates reset periodically through auctions. These securities have long-term maturities or are issued in perpetuity.

ARS were promoted as safe investments with easy access to funds. However, they are typically long-term variable rate debt with interest payments determined on a 7, 28, or 35-day basis. When interest rates rise, the interest expenses and volatility of ARS also rise, making them a higher-risk investment than fixed-rate debt.

The auction market for ARS collapsed in February 2008, leaving investors unable to liquidate their investments. The ARS market is now generally defunct.

An example of an ARS investment would be a bond issued by a municipality or corporation that has its interest rate reset through an auction every 28 days. Another example would be a preferred stock that pays a dividend that is reset through an auction every 35 days.

These examples illustrate how ARS investments work. The interest rate or dividend payment is not fixed, but rather determined through an auction process. This means that the return on investment can vary and may be higher or lower than expected.

Investor Protection Guide: Affinity Fraud | Investor Protection Guide: Equity-Indexed Annuities

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babycat
15:11
Aw poor Bulbasaur
Dkk
15:11
In all of these situations described, the point of failure happened way before the emotional reality set in.
babycat
15:11
I'm like extremely monogamous at heart
babycat
15:12
I'm never dating or fucking more than one person at a time
babycat
15:12
But one time this guy I'd been dating for a little bit had a tinder notification come up on his phone and I flipped my shit lol
1a2b3c4d26z
15:12
Yea but isn't that just cheating
1a2b3c4d26z
15:12
If you're already dating
babycat
15:13
I mean like casual dating without a label
BulbasaurNoLikeCardio
15:13
My wife and I date girls together but we don't fuck unless it is going to be exclusive but having hot chick friends you can flirt with is great.
babycat
15:13
I also have hot chick friends I can flirt with
BulbasaurNoLikeCardio
15:13
@babycat: Tinder spams marketing messages so dude probably forgot to delete but either way he didn't deserve you so fuck him
babycat
15:14
That was actually it but I was mean to him for like two days about it anyways
Dkk
15:14
Yeah, I am going to bed. I am starting to feel tired. Goodnight.
15:14
Goodnight DK
Dkk
15:14
Thank you. Goodnight to you too.
babycat
15:14
don't let the bedbugs bite
Dkk
15:14
Yeah cus bed bugs can carry aids.
BulbasaurNoLikeCardio
15:14
The whole having a group of hot chick friends you can flirt with while going out is great. Makes for a fun and safer environment when drinking.
babycat
15:15
I love my hot chick friends. Don't know where I would be without them
15:15
Crazy story, I had dinner with the dad of a friend of mine and he just openly went on Tinder in front of me and the other guys. Later my mom ran into him with another woman (not his wife/friend's mom) and he got very uncomfortable and never texted her again
15:15
I can't imagine what it's like being a cheater or like a serial dater. Shit seems so nervewracking
BulbasaurNoLikeCardio
15:16
My wife and I have great and open communication but one night she kept asking me why this girl is blowing up my phone with messages/pictures so I showed her... she got a new puppy and got drunk so had her puppy doing a fashion shoot at 11pm.
babycat
15:16
Awwww
BulbasaurNoLikeCardio
15:17
I need more hot friends to hang with, the town we are in sucks butt for it and everyone seems shifty/flaky.
glovediedthisishismom
15:17
whoever was asking for an AU wave earlier fished their wish
babycat
15:18
I keep my dating very clean and above board. No overlaps, no ambiguities. If you want to go into some sort of public office in the future it's good to be smart about things like that
babycat
15:18
So many politicians have sex scandals and that's how they get blackmailed and other people have power over them. I mean of course there are ethical and emotional issues too but it's literally just smart to not be a cheater
BulbasaurNoLikeCardio
15:19
I would never go into public office as it drags in your family as well. Dating is so much easier then some people make it out to be and it is not that hard to not cheat. I would always tell my soldiers to rub one out before making a big decision so they arent acting dumb
BulbasaurNoLikeCardio
15:20
Like if more cheaters just paused and rubbed one out they would be like you know maybe ill just watch some TV
babycat
15:20
I've seen some people do a really good job keeping their family out of it. But it really is an "anything they can use against you, they will" type of vibe
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