Author: Cody Berne

Understanding Interest Charges on Margin Loans

The SEC recently published an Investor Bulletin with important information about interest charges on margin accounts. Trading on margin is not free. Like other borrowed money, broker-dealers that lend money to investors to trade on margin charge interest. These interest charges increase risk, reduce an investor’s return, and increase the amount of money an investor must earn to break even.

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SEC Division of Examinations Announces Priorities for 2022

The SEC Division of Examinations announced its 2022 examination priorities in late March. The priorities include a “focus on private funds, environmental, social and governance (ESG) investing, retail investor protections, information security and operational resiliency, emerging technologies, and crypto-assets.”

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Crypto—Do You Understand What You Are Buying?

New York Times columnist Paul Krugman wrote about crypto currency markets and investing in his column, How Crypto Became the New Subprime. Whether you are a crypto skeptic or advocate, the column draws an interesting comparison between…

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Tax Avoidance, IRAs, and Precious Metals

A recent Wall Street Journal article, A Couple Stored IRA Gold at Home. They Owe the IRS More than $300,000, is a reminder about what can be complex rules for using an IRA to invest in esoteric assets, such as gold, silver, platinum, and other precious metals.

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Carvana Sells Company Stock

In an article about insider stock sales at publicly traded companies, the Wall Street Journal reported that the father of the CEO of Carvana, an online car dealer, sold $3.6 billion in company stock since October.

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SEC Issues Wrap Fee Risk Alert

The SEC’s Division of Examinations issued a Risk Alert about wrap fee programs used by investment advisers. Wrap fee programs require advisory clients to pay a consolidated fee for investment advisory services and other expenses, such as commissions, trading fees, and administrative costs.

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Missing: 200,000 Ghost Cattle

The Commodity Futures Trading Commission accused a Washington rancher, Cody Easterday and Easterday Ranches, Inc., of defrauding beef and pork producers by billing for cattle that never existed.

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