3 ms·
The point is that with public securities, the SEC makes sure that it's not a scam. A public company can't just decide one day to issue a ton of stock and hand
by ajross 3y ago
The point is that with public securities, the SEC makes sure that it's not a scam. A public company can't just decide one day to issue a ton of stock and hand it over to an arbitrary entity, there's a regulatory process and legislated veto power held by the shareholders/board.
When you buy an unregulated security (like shares in a "crowdfunded" startup), that's the protection you're not getting. Most people in this community tend to see the SEC as the enemy, but this is the value it provides.
- matsemann 3y agoHmm, where I live at least (not US) the company still have to act in a way that's in the interest of its owners. They can't do shady stuff just because they're not publicly traded. Or, they can, but it's not any more legal.
- robbintt 3y agoYou can sue in the US but there's really no case for OP. The company is "trying its best to deliver value".