4 ms·
What are the legal implications? Can you openly trade shares in your private company in such a market?
by braindead_in 18y ago
What are the legal implications? Can you openly trade shares in your private company in such a market?
- bwd 18y agoCheck out the Wikipedia article on the Securities Act of 1933: http://en.wikipedia.org/wiki/Securities_Act_of_1933 http://en.wikipedia.org/wiki/Securities_Act_of_1933 The SEC publication on rule 144 is also pretty accessible to people who are not lawyers and do not work in the securities industry: http://www.sec.gov/investor/pubs/rule144.htm http://www.sec.gov/investor/pubs/rule144.htm
- ojbyrne 18y agoThe NYT article linked to has more details. Basically "The new market will be open only to accredited investors and qualified institutional buyers."
- ivankirigin 18y agoThe real question is about the sellers. It might evoke Bubble #1 mindsets, but raising money by selling stock openly (in this case, not an IPO) could be a good way to go.