CEO and CFO responsibilities to shareholders

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Welcome to Chedsblog!   
Helping new traders avoid my old mistakes-
OTCBB Pennystock trading article topics include:

Reading financials and filings

Market makers 

L2 and chart analysis

Understanding the competition

Using social media to trade

Price and volume study

Bankroll management

Game theory

Sub .01 low float setups

Interviews with influence makers

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    CEO and CFO responsibilities to shareholders:   
                       Credit to IHUB: Mainesbest
    CEO’s and CFO’s of public companies are subject to several Federal requirements whereby they are on record certifying the accuracy of their SEC filings. The objective of these requirements is for greater transparency and hence investor confidence which is becoming of  a greater priority and focus with regulatory and enforcement agency’s in light of past and current accounting scandals. 
    One of these requirements is contained in Section 906 of the Sarbanes-Oxley Act, which President Bush signed into law which requires CEO’s and CFO’s of all public companies — not just the largest ones — to certify the accuracy of all periodic reports (on Form 10-Q or Form 10-K) that they file. Further, the company officer (most of the time it is the CEO) must certify not just the accuracy of the 
    information in the report, but also ascertain that the report complies with SEC reporting requirements. These certifications are not just limited to the financial statements in the filings. The certifications apply to ALL disclosures in the documents filed, regardless of the level of importance. Finally the SEC rules require that the executive certify that the financial statements “fairly present in all material respects the financial condition and results of the operations of the issuer.” This goes beyond a mere statement that the financials comply with GAAP-SEC rules and regulations. 
    ALL reports filed with the SEC are subject to SEC review and comment and, in fact, the Sarbanes-Oxley Act requires the SEC undertake some level of review of every reporting company at least once every three years. If the previously-issued financial statements are materially misstated, they have to be corrected promptly. A material misstatement does not automatically equate with criminal intent to defraud. 
    However, the amendment does raise the question as to what prompted this matter and corresponding amendment-delay. One does not require a CPA license or a law degree to know that the subject of embedded conversions and their corresponding valuations is an area of concern that has found its way under the microscope and watchful eye of SEC and as well The Division of Enforcement, Chief 
    Accountant’s Office (ENF-OCA) which is a division of The Office of the Chief Accountant (OCA). It is the responsibility of the ENF-OCA, under the Securities Act of 1933 and the Securities Exchange Act of 1934, to monitor and enhance compliance with the applicable disclosure and accounting requirements. In its filing reviews, the Division concentrates its resources on critical disclosures that 
    appear to conflict with Commission rules or the applicable accounting standards and on disclosures that appear to be materially deficient in transparency, explanation and clarity.
    Further CEO’s are not new to this subject and the SEC knows that companies seek out CPA’s that will accommodate their unlawful reporting agendas. As a result of this practice and the adverse financial effects to the public came the enactment in 2002 of the Sarbanes-Oxley Act and later the Dodd-Frank Wall Street Reform and Consumer Protection Act, P.L. 111-203. These helped usher in a data analysis program known as the aberrational performance inquiry, or API. Today the SEC uses a software known as Market  Information Data Analytics System (Midas). The SEC began phasing this software in a few years back and such is applicable to to analyzing performance and filing results from every company, firm, and fund traded in the United States.

    Welcome to Chedsblog!   
    Helping new traders avoid my old mistakes-
    OTCBB Pennystock trading article topics include:

    Reading financials and filings

    Market makers 

    L2 and chart analysis

    Understanding the competition

    Using social media to trade

    Price and volume study

    Bankroll management

    Game theory

    Sub .01 low float setups

    Interviews with influence makers

      OTCBB Penny Stocks Trading Market Makers L2 Charts Technical Analysis Financials Learning Discipline Networking Planning Bankroll Management Taking Profit Paper Trading Options Nasdaq NYSE Small Cap Stock Picks Alerts Bashers Growth Pennystock Sub Penny List Stop Loss Top Hot

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