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Selling Of Stocks/Shares ... is it LEGAL???
9/18/2007 3:32:07 AM
I have over the years been involved with a few stocks here and there and one of my questions have always been how does a company become able to sell stock/shares.

I know in the US companies must register and meet all requirements of the SEC. It is also required in all other countries for a business to register with their Securities Commission if they wish to offer shares/stock.

This is also true for any business that is based on the internet. Is your company listed on a stock exchange? Does it offer shares/stock?

If you have questions about this ask your company for it's prospectus and/or flotation proposal. Be sure to read it and ask for clarity of anything you don't understand. Look them up on the exchange and read their filing status. Be sure of your risks before investing.

If your company is pre-selling shares/stock be wise to stay away. They are not listed on an exchange and means they are working to get your money without a regulatory system, which is illegal. Regulatory systems are your guarantee that all is in your best interest.

Do your due diligence and know for sure.

Kenneth R Sword Jr
Mary Hofstetter

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Re: Selling Of Stocks/Shares ... is it LEGAL???
9/18/2007 5:07:30 AM
Hi Ken, wanted to let you know I read this but don't enough to respond with an intelligent question. After all I didn't know to get out in the late 80's and early 90's. If a person were to buy stock before it is for that I can't see happening. That would mean they would GIVE money to the company and then expect the company to turn the money over to the stock exchange when it goes public. Hey, I am not on the stock exchange but maybe someday I will have a company to list with them. Anyone wanting stock now (you have to have it NOW), send me $20 for each share you wish to purchase. Someday I will invest it for you. If I can remember where I buried it in the garden. Thank you for another lesson in Internet Crime 101
Lisa Lomas

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Re: Selling Of Stocks/Shares ... is it LEGAL???
9/18/2007 5:10:40 AM
Hi Kenneth,

Another fine, accurate informative forum topic.

It can be quite scary but I have stepped out of my comfort
zone recently on this one and its paying off, whew. lol.

Thankyou buddy
Thinking of visiting New Zealand. A must see is Hawkes Bay, Hastings.
Arthur Webster

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Re: Selling Of Stocks/Shares ... is it LEGAL???
9/18/2007 5:15:33 AM

Hi, Kenneth,

It is now possible to make a private public offering of shares without registering with a market, without a nomad and without assets.

These PPVs have been approved and are becoming much more popular because they allow the company to raise capital without the usual broker associated high fees & expenses.

Stocks cannot be registered on an exchange unless they are being traded and stocks sold under PPV cannot be traded.

Although stock offered under a PPV should have a prospectus, it will not be anything like as comprehensive as those produced by brokers to promote a stock.

PPVs are of course, at the very top end of high risk investments  since there is absolutely no security for the stock holder until the company goes public. On the other hand, they do have the potential of some of the quickest and highest returns.

One of the most important questions anybody buying shares should ask themselves is - What assets will secure my investment? Will the shares represent fixed/saleable assets to, at least, the value of stock issued. Most companies pretending to offer shares on the internet are cyber companies and will have no assets of any description, apart, perhaps, for the value of the intellectual property - but this cannot be realised to repay investors.

It goes without saying that the share certificates should strictly limit the potential loss of the share holder to the amount of capital invested. I have seen share certificates that have shown a potental %age 'ownership' of the rights to the company - this also indicates a potential liability that could be in excess of the initial capital investment.

No shares should be bought without independent professional advice.

The Old Coot


Thomas Dinnocenzo

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Re: Selling Of Stocks/Shares ... is it LEGAL???
9/18/2007 10:29:50 AM
Thanks Arthur and Ken, I am in the process of investing in what is most likely a PPV, though now I have a few more questions to ask of the company. I do have professional advise on this and have been doing business with the company in question for some time concerning my business and other matters.
"Opportunity doesn't knock. You knock and opportunity answers!" Thomas Dinnocenzo

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