What Does 500-Shareholder Threshold Mean?
The 500 shareholder limit for investors is an outdated rule set by the Securities and Exchange Commission (SEC) that stimulates a company's information needs when it can reach as many separate shareholders as possible. Section 12 (g) of the Securities Exchange Act, 1934 requires that bond issuers be registered with the SEC and start publishing financial information within 120 days after the end of the financial year.
- The 500 shareholder limit is a rule required by the SEC when companies are required to disclose financial statements and other information to the public when they reach 500 or more separate shareholders.
- These rules, in effect from 1964 to 2012, were designed to prevent fraudulent, obscure and misinformation reports in the desktop market.
- Currently, the shareholder limit is 2,000, due to the rapid growth in investments in large-scale technology startups, which quickly surpassed the 500 mark.
Literal Meanings of 500-Shareholder Threshold
Meanings of Shareholder:
Shareholders of a company.
Sentences of Shareholder
Should shareholders sell or close if buying rumors arise?
Meanings of Threshold:
A piece of wood, metal or stone that forms the base of a door and is passed through when entering a house or room.
The severity or intensity of a reaction, phenomenon, consequence, or condition that must be exceeded.
Sentences of Threshold
I stopped at the door of Sheila's bedroom
Nothing happens until the signal crosses the threshold
Synonyms of Threshold
doorstep, sill, doorsill, doorway, entrance, entry, way in, door, gate, gateway, portal, approach