500 Investor Rule

DEFINITION of '500 Investor Rule'

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.

BREAKING DOWN '500 Investor Rule'

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. SEC Form NSAR-U

    An annual filing with the Securities and Exchange Commission ...
  2. SEC Form 15

    A filing with the Securities and Exchange Commission (SEC), also ...
  3. SEC RW Filing

    This filing is made by companies which have already filed to ...
  4. SEC Form 10

    A filing with the Securities and Exchange Commission (SEC), also ...
  5. SEC Schedule 13E-3

    A schedule that must be filed with the Securities and Exchange ...
  6. SEC Form 497

    The SEC form that investment companies use to file their definitive ...
Related Articles
  1. Investing Basics

    How A Company Files With The SEC

    Filing with the SEC is not as complicated as you might thing -- just be meticulous about following the steps.
  2. Budgeting

    8. SEC Investigations

    Companies provide distress signals long before they go under. Find out how to read them.
  3. Professionals

    Introduction

    The forms companies are required to file provide a clear view of their histories and progress.
  4. Popular Resources for Equity Research and Analysis: Chapter 2: The SEC Website

    Second to the company investor relations sites is the direct SEC website at www.sec.gov. Investors can learn quite a bit about the securities industry from the SEC. The forms page, which details ...
  5. Professionals

    Regulation A & D

    Regulation A & D
  6. Investing Basics

    Policing The Securities Market: An Overview Of The SEC

    Find out how this regulatory body protects the rights of investors.
  7. Economics

    Understanding the SEC

    The SEC's triple mandate of investor protection, maintenance of orderly markets and facilitation of capital formation makes it a vital player in capital markets.
  8. Investing Basics

    SEC Filings: Forms You Need To Know

    The forms companies are required to file provide a clear view of their histories and progress.
  9. Professionals

    Registration of Securities

    FINRA/NASAA Series 66 - Registration of Securities. In this section exemptions to state registration of securities under the Uniform Securities Act (USA) and notice filing.
  10. Investing

    What's the SEC?

    The Securities and Exchange Commission (SEC) is an independent agency of the United States government. The mission of the SEC is to enforce securities laws passed by congress. These laws aim ...
RELATED FAQS
  1. When must a company announce earnings?

    The Securities & Exchange Commission (SEC) requires companies to file earnings reports no later than 45 days after the ... Read Answer >>
  2. How often do mutual funds report their holdings?

    Learn how mutual funds are required by the Securities and Exchange Commission to disclose their portfolio holdings on a quarterly ... Read Answer >>
  3. What are unregistered securities or stocks?

    Before securities, like stocks, bonds and notes, can be offered for sale to the public, they first must be registered with ... Read Answer >>
  4. How do I know if I am buying unregistered securities or stocks?

    All securities, including stocks, bonds and notes, must be registered with the Securities and Exchange Commission (SEC) before ... Read Answer >>
  5. What are the disclosure requirements for a private placement?

    Learn about the SEC rules for disclosure requirements in private placement offerings, and understand what type of information ... Read Answer >>
  6. What kinds of restrictions does the SEC put on short selling?

    Learn about the rules and regulations on short selling enforced by the U.S. Securities and Exchange Commission, or SEC, including ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center