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Immediate Family

What is an 'Immediate Family'

Immediate family members usually include a person’s parents, spouse, children and siblings. A person’s grandparents, grandchildren, in-laws and domestic partners sometimes are included in the immediate family unit, depending on which law or organization governs the determination. The definition of immediate family affects whether a person can use paid or unpaid leave to care for a sick family member or attend a funeral, and it also restricts some financial transactions, especially those involving the stock market.

Explaining 'Immediate Family'

An example of how the designation of immediate family affects the stock market is that the Financial Industry Regulatory Authority (FINRA), formerly the NASD, prohibits the sale of hot issues to immediate family members, as stated in the Rules of Fair Practice. Additionally, rules governing a person's immediate family are noted in FINRA's concepts of withholding and free-riding.

Which Family Members Are Covered Under FMLA?

The FMLA has a fairly strict definition of which relatives are included in your immediate family. The law defines immediate family members as spouses, parents and minor children, including adopted and foster children who are newly placed into the family. In-law parents aren’t included in the definition, even when those individuals live with the employee. While children are included in the definition of immediate family, they must be under age 18 or unable to care for themselves.

Examples of Stock Sales That Are Prohibited for Immediate Family

To prevent stock manipulation, the FINRA prohibits the sale of new-issue stock to the immediate family of the brokers who sell the stock. In addition, when a company goes public, the immediate family members of the company owners cannot purchase the initial offering. The FINRA has a broad definition of immediate family that includes all in-laws and anyone who relies on the person for material support.


Further Reading


Time, passage, and immediate experience
www.oxfordhandbooks.com [PDF]
… Law; Greek and Roman Papyrology; Marriage and the Family; Material Culture … and Quantitative Methods; Economic Development; Economic History; Economic Theory and … Environmental, Agricultural, and Natural Resources Economics; Financial Economics; Health, Education …

Guestworker migration, remittances and the extended family: evidence from PakistanGuestworker migration, remittances and the extended family: evidence from Pakistan
www.sciencedirect.com [PDF]
… Law; Greek and Roman Papyrology; Marriage and the Family; Material Culture … and Quantitative Methods; Economic Development; Economic History; Economic Theory and … Environmental, Agricultural, and Natural Resources Economics; Financial Economics; Health, Education …

SME financing in the UK and in China: a comparative perspectiveSME financing in the UK and in China: a comparative perspective
www.emerald.com [PDF]
… Law; Greek and Roman Papyrology; Marriage and the Family; Material Culture … and Quantitative Methods; Economic Development; Economic History; Economic Theory and … Environmental, Agricultural, and Natural Resources Economics; Financial Economics; Health, Education …

Corporate governance and financial distress: Evidence from TaiwanCorporate governance and financial distress: Evidence from Taiwan
onlinelibrary.wiley.com [PDF]
… Law; Greek and Roman Papyrology; Marriage and the Family; Material Culture … and Quantitative Methods; Economic Development; Economic History; Economic Theory and … Environmental, Agricultural, and Natural Resources Economics; Financial Economics; Health, Education …

Management succession and financial performance of family controlled firmsManagement succession and financial performance of family controlled firms
www.sciencedirect.com [PDF]
… Law; Greek and Roman Papyrology; Marriage and the Family; Material Culture … and Quantitative Methods; Economic Development; Economic History; Economic Theory and … Environmental, Agricultural, and Natural Resources Economics; Financial Economics; Health, Education …

Economic crisis and social protection in the European Union: Moving beyond immediate responsesEconomic crisis and social protection in the European Union: Moving beyond immediate responses
onlinelibrary.wiley.com [PDF]
… Law; Greek and Roman Papyrology; Marriage and the Family; Material Culture … and Quantitative Methods; Economic Development; Economic History; Economic Theory and … Environmental, Agricultural, and Natural Resources Economics; Financial Economics; Health, Education …

The coupling of ownership and control and the allocation of financial resources: evidence from Hong KongThe coupling of ownership and control and the allocation of financial resources: evidence from Hong Kong
onlinelibrary.wiley.com [PDF]
… Law; Greek and Roman Papyrology; Marriage and the Family; Material Culture … and Quantitative Methods; Economic Development; Economic History; Economic Theory and … Environmental, Agricultural, and Natural Resources Economics; Financial Economics; Health, Education …

Applying a stochastic financial planning system to an individual: Immediate or deferred life annuities?Applying a stochastic financial planning system to an individual: Immediate or deferred life annuities?
jor.pm-research.com [PDF]
… Law; Greek and Roman Papyrology; Marriage and the Family; Material Culture … and Quantitative Methods; Economic Development; Economic History; Economic Theory and … Environmental, Agricultural, and Natural Resources Economics; Financial Economics; Health, Education …

Family business groups around the world: Financing advantages, control motivations, and organizational choicesFamily business groups around the world: Financing advantages, control motivations, and organizational choices
academic.oup.com [PDF]
… Law; Greek and Roman Papyrology; Marriage and the Family; Material Culture … and Quantitative Methods; Economic Development; Economic History; Economic Theory and … Environmental, Agricultural, and Natural Resources Economics; Financial Economics; Health, Education …



Q&A About Immediate Family


Who is not included under FMLA?

In-law parents are not included even when they live with employee. While children are included under FMLA they must be under age 18 or unable to care for themselves.

Who cannot purchase new issue stocks from brokers who sell them?

Immediate families of company owners cannot purchase initial offering stocks when companies go public. The FINRA has broad definition of immediate families that includes all in laws and anyone who relies on person for money support including minor children living at home whose income is used by others; this applies only if child lives at home more than six months per year; parent(s) may rely on childs income if child is full time student over age 18; grandparent(s) may rely on grandchilds income if grandchild is full time student over age 18; stepparents may rely on stepchildrens income if stepchild is full time student over age 18; foster parents may rely on foster childrens

Is there more than one type of immediate family?

Yes. There are two types; nuclear and extended families. Nuclear families consist only of parents and their children while extended families may include grandparents or other relatives who live nearby but are not part of the nuclear unit.

Who does the immediate family include?

The immediate family includes parents, siblings, spouses, children and individuals related by blood whose close association is an equivalent of a family relationship. It can also contain others connected by birth, adoption, marriage, civil partnership or cohabitation such as grandparents, great-grandparents, grandchildren and great-grandchildren.

What is immediate family?

Immediate family members include a persons parents, spouse, children and siblings. A persons grandparents, grandchildren, in-laws and domestic partners sometimes are included in the immediate family unit depending on which law or organization governs the determination. The definition of immediate family affects whether a person can use paid or unpaid leave to care for a sick family member or attend a funeral, and it also restricts some financial transactions especially those involving the stock market.

How does the designation of immediate family affect the stock market?

It prohibits selling hot issues to immediate family members as stated in rules governing fair practice. Additionally it notes that rules governing a person's immediate family are noted in FINRA's concepts of withholding and free-riding.

How many people do extended families usually consist of?

Extended Families usually have more than four members but less than ten members including grandparents or other relatives who live nearby but are not part of the nuclear unit. Extended Families can sometimes even have up to twenty five members if it involves multiple generations living together under one roof such as when both sets (or all three) grandparents live

How many people do nuclear families consist of?

Nuclear families usually consist of around three to four people including parents and their children. However some exceptions exist where they may have five members like in cases where there are step-siblings from previous marriages or remarriages included in the household along with their biological siblings from the same parents. In rare cases nuclear families may even have six members if there are twins involved who share the same biological mother but different fathers (such as fraternal twins). Some households that involve single parent households can be considered as nuclear units if they only consist of one parent with his/her child(ren).

What is the immediate family?

The immediate family is a defined group of relations used in rules or laws to determine which members of a person's family are affected by those rules.

What does FMLA stand for?

Family Medical Leave Act (FMLA)

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