A more thorough explanation:

Definition: Bad-boy disqualification refers to an issuer's disqualification from certain SEC-registration exemptions due to the issuer's violations of securities laws.

Example: If a company has been found guilty of fraud or other securities violations, they may be disqualified from certain exemptions that allow them to register securities without going through the full SEC registration process. This means that they will have to go through a more rigorous registration process and may face additional penalties.

Explanation: Bad-boy disqualification is a consequence of violating securities laws. It is a way for the SEC to ensure that companies that have engaged in fraudulent or other illegal activities are not able to take advantage of certain exemptions that would allow them to avoid the full registration process. This helps to protect investors and maintain the integrity of the securities markets.