Tag: threshold

Exam Alert: Hart-Scott-Rodino Act Thresholds Updated for 2014

The Hart-Scott-Rodino Act specifies filing requirements for mergers and acquisitions based on certain monetary thresholds. These thresholds are adjusted for inflation on an annual basis. As of February 24, 2014, the thresholds are now as follows… Continue reading

The Hart-Scott-Rodino Act specifies filing requirements for mergers and acquisitions based on certain monetary thresholds. These thresholds are adjusted for inflation on an annual basis. As of February 24, 2014, the thresholds are now as follows:

Original threshold …………….. Adjusted threshold ($ million)
$10 million ………………………. 15.2
$50 million ………………………. 75.9
$100 million …………………….. 151.7
$110 million …………………….. 166.9
$200 million …………………….. 303.4
$500 million …………………….. 758.6
$1 billion …………………………. 1,517.1

Source: Current 2014 Thresholds

This alert applies to the Series 24 and the Series 79.

Exam Alert: FINRA implements pricing limits to prevent extreme volatility in NMS stocks

Effective April 8, 2013, FINRA and other SROs will put into effect a plan to address extraordinary volatility in the stock market, such as what happened during the flash crash of 2010. The plan prevents trades in an NMS stock from being executed outside of a specified threshold of the average price of trades in the stock over the past five minutes. Continue reading

Effective April 8, 2013, FINRA and other SROs will put into effect a plan to address extraordinary volatility in the stock market, such as what happened during the flash crash of 2010. The plan prevents trades in an NMS stock from being executed outside of a specified threshold of the average price of trades in the stock over the past five minutes.

If the national best bid goes below the lower threshold or the national best offer goes above the higher threshold (but the other side of the market is within the threshold), the quotes for the stock enter a “straddle state.” When the quotes are in a straddle state, the primary exchange that lists the stock may pause trading in the stock.

If both sides of the market go either at or above the higher threshold or at or below the lower threshold, the quotes inn the stock enter a “limit state.” If the quotes remain in a limit state for 15 seconds, then the primary listing exchange for the stock must pause trading in the stock for five minutes.

The thresholds are as follows:

Average price over the past 5 minutes Threshold
More than $3.00 5%
$0.75 up to and including $3.00 20%
Less than $0.75 Lesser of $0.15 or 75%

These thresholds are doubled within 15 minutes of market open and 25 minutes of market close. Also, a leveraged ETP (exchange-traded product) multiplies the threshold by the leverage ratio of the product.

The plan will be implemented in two stages. The first stage will go into effect April 8, 2013, and will have the plan apply to certain selected NMS stocks. The second stage will go into effect six months later, and will expand the plan to cover all NMS stocks.

FINRA has added a new rule and adopted amendments to other rules to ensure compliance with the plan.

Source: FINRA Regulatory Notice 13-12: FINRA Adopts Amendments Relating to Regulation NMS Plan to Address Extraordinary Market Volatility

This alert applies to the Series 7, Series 24, Series 26, Series 55, and Series 62.

Exam Alert: Investment tax to take effect next year

Effective January 1, 2013, investment income of people with gross adjusted income over a certain threshold will be subject to a 3.8% tax. The threshold is $200,000 for single filers and $250,000 for joint filers. Income from certain investments will not be subject to the tax. The tax applies to investment income that causes the gross adjusted income of the individual or couple to be in excess of the $200,000 or $250,000 threshold. Continue reading

Effective January 1, 2013, investment income of people with gross adjusted income over a certain threshold will be subject to a 3.8% tax.  The threshold is $200,000 for single filers and $250,000 for joint filers.  Income from certain investments will not be subject to the tax.  The tax applies to investment income that causes the gross adjusted income of the individual or couple to be in excess of the $200,000 or $250,000 threshold.

 

The income unaffected by the tax, according to the Wall Street Journal, includes:

-payouts from a regular or Roth IRA, 401(k) plan or pension

-Social Security income

-annuities that are part of a retirement plan

-life-insurance proceeds

-municipal-bond interest

-veterans’ benefits

-Schedule C income from businesses

-income from a business on which you are paying self-employment tax, such as a Subchapter S firm or a partnership

 

Income that is expected to be subject to the tax, according to the Wall Street Journal, includes:

-dividends

-rents

-royalties

-interest, except municipal-bond interest

-short- and long-term capital gains

-the taxable portion of annuity payments

-income from the sale of a principal home above the $250,000/$500,000 exclusion

-a net gain from the sale of a second home

-passive income from real estate and investments in which a taxpayer doesn’t materially participate, such as a partnership

 

For examples of how to calculate the tax, see the linked articles below.

 

Sources:

“Get Ready for the New Investment Tax” (Wall Street Journal)

“Medicare tax hikes: What the rich will pay” (CNN)

“About That Investment Tax…” (Wall Street Journal)

This alert applies to the Series 6, Series 7, Series 62, Series 82, Series 65, and Series 66.