Business Newsletter Fairness Standard and Business Judgment Rule   FAIRNESS STANDARD FOR DIRECTORSMore...   Formation and Operation of a Nonprofit Corporation   Nonprofit corporations are a useful tool for organizing for charitable, educational, religious, literary, or scientific purposes while reducing the risk of individual liability in accomplishing those goals. A nonprofit corporation is often referred to as a 501(c)(3) corporation due to the tax code provision under which most nonprofit corporations are considered exempt from federal taxation.More...   Restrictions on Short Sales of Securities   A short sale of a security is a sale of the security by an investor before the investor actually owns the security being sold. The investor profits if the value of the security declines between the time of the sale and the time of delivery of the security. Short sales may also allow an investor to lock in changes in value shares already held or to hedge against significant changes in value in securities.More...   Degree of Culpability   Typically, directors who conduct the corporation's business must exercise the care that an ordinary prudent person would exercise in the management of his or her own affairs under similar circumstances. This "ordinary" standard of care has been adopted by a majority of states and enacted in their corporation statutes. However, courts consistently interpret the culpability standard for the duty of care as one of gross negligence.More...   Advantages of Different Methods for Holding Securities   Owners of securities may hold their securities by possessing certificates or by registering the securities in "street name" with a brokerage or directly with the company issuing the securities. Some issuers of securities may not offer physical certificates or direct registration. Each method of holding securities has advantages and disadvantages to be considered by investors.More...