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Non-registered securities are those that are issued by any company not worth over something on the order of $100 million, since any company smaller than that ca
by CryptoPunk 8y ago
Non-registered securities are those that are issued by any company not worth over something on the order of $100 million, since any company smaller than that cannot afford to get their securities registered.
Anyway, this distinction doesn't change my point: offers of such securities to unaccredited investors are not categorically "scams". This kind of critical reductionism is reckless to individual rights and liberty.
- gamblor956 8y agoCompanies can get registered fairly cheaply; a company with almost no assets or value could do it. The expense comes from meeting the requirements to be registered on a large exchange like NYSE or NASDAQ (both of which are non-governmental entities). This is why small companies that have public stock are traded on "penny" exchanges.
- CryptoPunk 8y agoFair point. There are the OTC exchanges. In any case, I don't see any mom and pop shops offering their customers stock. There are only 10,000 companies with stock on the OTC market, out of 30 million in the US.