Stock Trading and Other Things

Does all bank and stock exchange has to be approved?

Does all bank and stock exchange in US has to be approved by the SEC Securities and Exchange Commission?

The bank is offering a high yield investment which I am afraid is against SEC. However, they are doing it viritually in Second Life.

Any legal or lawyer that can help out?

Public Comments

1. All banks are subject to the rules promulgated by the Comptroller of the Currency (and others, including State regulators) and all securities issued must be registered with the SEC unless they fall within one of the many exemptions from registration. The securities your bank is issuing probably falls within one of those exemptions. It is highly likely that the bank's lawyers have reviewed the proposed securities, and found them to be qualified under one of the exemptions. If you have doubts about the securities issued, discuss it with your boss. It's very probably not in violation of any of the rules; most bank lawyers and law firms are quite conservative.