Explain What Makes Someone a "Sophisticated Client

question 91

Essay

Explain what makes someone a "sophisticated client."

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Definitions:

Market Price of the Shares

The current price at which a share of stock is bought or sold on the market.

Section 5

Often associated with specific legal documents or statutes, such as the Federal Trade Commission Act, where it prohibits unfair or deceptive business practices.

1933 Act

Officially known as the Securities Act of 1933, it is a U.S. law enacted as part of the response to the stock market crash of 1929, aimed at regulating securities transactions and requiring disclosures to protect investors.

Registration Statement

A document submitted to a regulatory authority, detailing the specifics of a company’s proposed public offering or securities issuance.