Supreme Court decision made it clear that speech on the internet was fully protected by the 1st amendment?
Reno v. American Civil Liberites Union
What was the Communications Decency Act (CDA) of 1996?
When Congress tried to regulate indecency on the internet by forbidding the operation of certain websites.
The court viewed the internet as a public forum
Public Practitioners have "free rein" to send unmediated communication to various publics
What does the Children's Internet Protection Act require?
The CIPA requires public schools and libraries that receive federal money for the Internet to install technology prevention measures
Libraries do NOT have to follow CIPA requirements
What are publicly owned companies?
Companies that have shars and are publicly traded on the stock market.
Who has to comply with the Securities Act of 1933 and Securities Exchange Act of 1934?
PR specialists whose work involves communication with publicly owned companies.
What were the two responses to the great stock market crash of 1929?
Securities Act of 1933 and Securities Exchange Act of 1934
What is the purpose of the Securities Act of 1933?
The Securities Act of 1933 restricts corporate communication before and during the period that new securities offerings are being registered.
What is the purpose of the Securities and Exchange Commission Act of 1934?
The Securities and Exchange Commission Act of 1934 regulates trading of securities, and requires periodic reporting about a company
What are the 3 important things the (SEC) does?
1.) enforce newly passed security laws 2.) promote market stability 3.) protects investors
What acts regulate investment companies and advisers?
The investment Company Act of 1940/ Investment Advisor Act of 1940
Investor relations are sometimes called "financial PR"
How do practitioners achieve "adequate and accurate information under federal law?
Press releases, draft speeches, quarterly and annual reports
How do practitioners stay up to date with changes to securities?
By regularly checking the SEC's website
What are the two forms of Disclosure requirements?
1.) those mandated by statute 2.) those required to avoid fraud
What's the purpose of "material information"?
Material information is for investors so they can make purchasing decisions based on facts
What reforms did the Private Securities Litigation Act of 1995 change?
Restricting abusive litigation practices
What act was created to encourage dissemination of information without fear of litigation
Safe Harbour for Forward Looking Statements
Security regulations also prohibit fraud in security trading
What is Business Literacy?
The ability to use financial and business information as the basis for decisions that help an organization achieve success
What 3 categories does Business Literacy fall into?
For profit, non profit, and not-for-profit
What category do credit unions fall into?
Know the difference between horizontal and vertical businesses
In horizontal businesses, production units create similar outputs. An example would be a brewer that produces beer under many different labels. Vertical businesses control all parts of their supply chains.
What is centralized decision-making?
top-level leadership group sets organizational policy and direction
What is decentralized decision-making?
Decisions are made in operating units across the organizations.
What is a balance sheet?
A statement of assets, liabilities, and capital on a specific date. The report details the balance of income and expenditure over the preceding accounting period
What's another phrase for an income statement?
Also known as the profit-and-loss statement or P&L
A lobbyist must report the amount of money he or she received during the previous quarter for lobbying activities.
What do the Federal Corrupt Practices Act of 1925, Hatch Act of 1939, and the Taft-Hartley Act of 1947 have in common?
These laws prevent organizations, and unions, from contributing to any political campaign or candidate and prohibit any candidate from accepting such contributions.
What does the Registration of Foreign Agents Act of 1938 require?
PR professionals who represent a foreign government to register with the U.S. State Department.
Regarding the Regulation Fair Disclosure publicly traded companies DO NOT have to disclose material information to all investors at the same time.
What 3 things does the Sarbanes-Oxley Act cover?
Corporate auditing accountability, responsibility and transparency
What two acts contain checks and balances for securities-related actions and remain in place today?
The Securities Act of 1933 and the Security Exchange Act of 1934
Rule 5c is also known as?
What are two common black-out themes that exist within contracts?
Two common blackouts relate to employee benefits and political campaigns.
What does The Security Exchange Act of 1934 mandate?
What does the SEC Form 8-K provide?
Current information about a corporation so investors can make informed buying decisions.
The SEC Form 10K is also known as:
The annual report
During a quiet period company generally, cant do what?
Companies can't issue any information that might affect the stock price or be perceived as “front-running” the stock offering.
In financial PR, typographical errors in news releases are typically okay if found early
A financial PR practitioner does not need to know the language behind a SEC filing
Who do analyst relations communicate with when tracking stocks for independent research and consulting firms?
A group of anxious shareholders is sometimes called what?
"The dissatisified investor class"
A large sell-off of stock is often called what?
Key clients will want to know when a stock takes a dip of what percent?
3 to 10%
Who is most likely to be chosen to answer queries about the company's CEO's compensation and perks?
The financial PR manager
When there are SEC confidentiality implications you will likely need formal shareholder approval
When two companies of similar size go through a merger its assumed in 3 years how many of the original workforce wil remain?
What does the U.S federal law require of corporations whose stock is publicly traded?
Report revenue and profit or loss every 3 month
Net income is synonymous with profit or earning
What is considered the bottom line and benchmark for companies?
Operating earnings and earnings from continuing operations mean the same thing
What should wrap stories convey to the reader?
Who is winning, who is losing, and why
In some countries, companies don't report every quarter
Foreign countries that sell shares in the United States are called what?
American depositary reciepts
In terms of the bankruptcy code what chapter usually leads to liquidation?
What chapter of the bankruptcy code is designed to give special debt relief?
When you borrow money to buy a car, the lender is known as what?
A secured creditor
What is a prepackaged bankruptcy?
Its when companies headed towards bankruptcy start negotiations with secured creditors
What would be considered a good sign that your company is the acquirer and not the merger?
The company stock is being used as currency
When presenting a merger to the public, what 3 main things should be in the first version of the story?
The full name of buyer, value of the deal, and a reasoning why its happening