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Finance: What is an Affiliated Person or Affiliated Investor? 3 Views


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Description:

What is an Affiliated Person or Affiliated Investor? An affiliated person is known as an insider in the financial world. These are the people who have a large influence over a corporation, like the board of directors and high stake shareholders.

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Transcript

00:00

finance a la shmoop - What is an affiliated person or affiliated investor

00:08

ah Phil he eight ed.. affiliated meaning with or connected to or legally

00:15

conjoined at the hip that's affiliated well why does the concept even matter or

00:21

exists in finance land well because too many times in the dark [Ancient ornament appears]

00:24

days before the SEC was invented family members seemed to always get spectacular

00:30

breaks in knowing just when to buy stock right before the big merger happened

00:36

well the SEC took notice and basically declared that affiliated people like

00:41

family members or people living under the same roof or connected in various

00:45

and sundry other you know close means well all of them would be treated more [The Daily Shmoop newspaper page]

00:50

or less as the same person as far as the law was concerned they created this

00:55

notion of an affiliate so that Joe Sixpack would have at least as fair a [Joe Sixpack appears]

00:59

chance to get positive investment returns at least as close as you know

01:03

the the close-knit cousin living in the guest home of the CEO of whatever

01:08

dot-com only back then it was just called whatever simply said if you're an

01:12

affiliate of an insider ie someone who can't just buy and sell shares of a

01:17

given company whenever they want because they have inside knowledge then you the

01:21

affiliate are legally treated as if you yourself are the insider that's an [Insider and affiliate side by side]

01:26

affiliate so don't let what happen to Phil happen to you [Phil standing behind bars]

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