What is FINRA rule 6490

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SEC Rule 10b-17 is the main rule for stock splits. Rule 10b-17 is an anti-fraud ordinance of the Federal Securities Act. The regulation requires issuers of listed securities to give timely notice of certain corporate actions, including stock splits, stock splits and the issuance of dividends. The termination must be made at least 10 days before the record date for the corporate action. The ordinance states that the notice must be sent to the National Association of Securities Dealers (NASD). The Financial Industry Regulatory Authority (FINRA) was founded in the course of the merger of the NASD with the New York Stock Exchanges (NYSE) Regulatory Committee in 2007, making it the successor to the NASD.

SEC Rule 10b-17 contains a number of requirements for the notice to be submitted, including the record date for determining the shareholders who are entitled to the distribution, the date of payment or distribution, the method of settlement of partial interests, and additional details relating to it on stocks or reverse splits, among other requirements.

In 2010, FINRA issued Rule 6490, which codified the disclosure requirements of SEC Rule 10b-17. FINRA states that issuers must fill out the required forms and pay the required fees to avoid subsequent penalties and delayed processing of documents. FINRA is also entitled to request other documents to verify information about the submitted forms. Rule 6490 authorizes FINRA not to process a request if it determines that the request is incorrect and processing the request is not necessary to protect investors and maintain orderly markets. FINRA may refuse to process documents if it actually knows that persons connected to the corporate action to be taken may be involved in securities fraud.