500 Investor Rule

A A A

DEFINITION

A SEC stipulation requiring a company that exceeds 500 individual investors with more than $10 million in assets to file its financials with the Securities & Exchange Commission. According to SEC rules, such a company has 120 days following the end of their fiscal year's end to file.



INVESTOPEDIA EXPLAINS

The 500 investor rule is a key threshold for private businesses which do not wish to disclose financial information for public consumption. Many believe that the 500 Investor Rule was one of the reasons that Google (Nasdaq:GOOG) filed for its IPO when it did, as the company was going to have to start disclosing to the SEC anyway.




RELATED TERMS
  1. Reporting Level

    A level of ownership of a specific futures position wherein the holders exceed ...
  2. Securities And Exchange Commission ...

    A government commission created by Congress to regulate the securities markets ...
  3. Securities Exchange Act Of 1934

    The Securities Exchange Act of 1934 was created to provide governance of securities ...
  4. SEC Fee

    A nominal fee that was created by the Securities Exchange Act of 1934 to be ...
  5. Financial Accounting

    The process of recording, summarizing and reporting the myriad of transactions ...
  6. Under Reporting

    The deliberate act of reporting less income or revenue than was actually received, ...
  7. Comprehensive Automated Risk Data ...

    The Comprehensive Automated Risk Data System (CARDS) is an initiative by the ...
  8. Baked In The Cake

    Projections, expectations and other news items that are already reflected in ...
  9. Hospital Visitation Authorization

    A document that indicates who is allowed to visit a patient in a hospital or ...
  10. Volcker Rule

    The Volcker rule separates investment banking, private equity and proprietary ...
Related Articles
  1. The SEC Is Watching: New Reporting Standards
    Mutual Funds & ETFs

    The SEC Is Watching: New Reporting Standards

  2. How The SEC Places Rules On Penny Stocks
    Investing Basics

    How The SEC Places Rules On Penny Stocks

  3. When, Why And How To File A Complaint ...
    Credit & Loans

    When, Why And How To File A Complaint ...

  4. How The Sarbanes-Oxley Era Affected ...
    Fundamental Analysis

    How The Sarbanes-Oxley Era Affected ...

  5. Understanding The Top SEC filing forms
    Investing Basics

    Understanding The Top SEC filing forms

  6. How A Company Files With The SEC
    Investing Basics

    How A Company Files With The SEC

  7. Day Trading Rules For Rookies: Don't ...
    Active Trading Fundamentals

    Day Trading Rules For Rookies: Don't ...

  8. Eight Financial Safeguards If Disaster ...
    Personal Finance

    Eight Financial Safeguards If Disaster ...

  9. Pot Stock Pitfalls To Watch For
    Investing News

    Pot Stock Pitfalls To Watch For

  10. Depository Trust Company
    Investing Basics

    Depository Trust Company

comments powered by Disqus
Hot Definitions
  1. Leased Bank Guarantee

    A bank guarantee that is leased to a third party for a specific fee. The issuing bank will conduct due diligence on the creditworthiness of the customer looking to secure a bank guarantee, then lease a guarantee to that customer for a set amount of money and over a set period of time, typically less than two years.
  2. Degree Of Financial Leverage - DFL

    A ratio that measures the sensitivity of a company’s earnings per share (EPS) to fluctuations in its operating income, as a result of changes in its capital structure. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in earnings before interest and taxes (EBIT).
  3. Jeff Bezos

    Self-made billionaire Jeff Bezos is famous for founding online retail giant Amazon.com.
  4. Re-fracking

    Re-fracking is the practice of returning to older wells that had been fracked in the recent past to capitalize on newer, more effective extraction technology. Re-fracking can be effective on especially tight oil deposits – where the shale products low yields – to extend their productivity.
  5. TIMP (acronym)

    'TIMP' is an acronym that stands for 'Turkey, Indonesia, Mexico and Philippines.' Similar to BRIC (Brazil, Russia, India and China), the acronym was coined by and investor/economist to group fast-growing emerging market economies in similar states of economic development.
  6. Pension Risk Transfer

    When a defined benefit pension provider offloads some or all of the plan’s risk – e.g.: retirement payment liabilities to former employee beneficiaries. The plan sponsor can do this by offering vested plan participants a lump-sum payment to voluntarily leave the plan, or by negotiating with an insurance company to take on the responsibility for paying benefits.
Trading Center