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Does the SEC really not assert jurisdiction over US residents selling equities (possibly even to other US residents) when they are shares of a primarily US-held
by prodigal_erik 15y ago
Does the SEC really not assert jurisdiction over US residents selling equities (possibly even to other US residents) when they are shares of a primarily US-held foreign corporation, or being offered through a foreign market? Somehow that surprises me.
- david927 15y agoUS citizens can own shares in a foreign public company. That company can sell shares. There's nothing the SEC can really get mad about here.
- prodigal_erik 15y agoThe SEC can bring felony charges against individuals offering unregistered securities, not just penalize a corporate entity that created the shares. As I understand it, it doesn't even matter whether the securities actually are shares of a corporation, or just some similar enough instrument. Before doing this, I would make very sure either the foreign corporation or the foreign market meet exemptions well defended in case law.
- david927 15y agoindividuals offering unregistered securities These are fully registered securities. It's legal.