Corporate Securities

Corporate Securities - Federal Corporate Securities...

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Federal Corporate Securities Regulation The Acts: o 1933 First issuance of stock to the public (IPO) o 1934 later re-sales of stock o Both Acts have Reporting function Anti fraud requirement Security: stocks, bonds, debentures, limited prtnership interests, o An investment o In a group o 3 rd party will manage the investment 1933 Act o deals with 1 st Issuance to the public not brokers and dealers not insiders of the company directors, officers, 10%+ SH, auditors, attorneys o RULE: an issuer (Seller) of securities must register unless exempt Registration: starts with a Registration Statement o Prospectus (a mini biz plan) o Audited financials o MGMT information o Capital structure (where money is coming from) SEC then has 20 days to approve, or it is auto approved
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SEC approval: not a verification of information, just proves that it is all complete While pending approval: NO SALES OF SECURITIES ARE ALLOWED, o But tombstone ads are ok, which just give out info about
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Corporate Securities - Federal Corporate Securities...

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