Hey Old Coot,

Glad you brought up PPO/PPV's. This also includes DPO's (Direct Public Offerings as well. The company can handle their own sales provided they file in each state they possibly offer and sell in. And they must follow all securities rules and regulations in conducting sales/trade.

Here is the qualifiers for a company to do a DPO on the internet.

"When you become involved in conducting a DPO, you are immediately subjecting yourself and your company to a wide range of regulatory bodies. These include the Federal Securities Exchange Commission (SEC), the National Association of Securities Dealers (NASD), the various securities exchanges or markets, and each individual state Securities Commission. As if these multiple regulatory bodies aren't enough, they are constantly changing the rules. You are strongly advised to have legal counsel assist you in reviewing your documents and the current filing procedures."


Found at: http://www.venturea.com/dpo.htm

So, a company still has to file in the US in order to Trade in the US.

Kenneth

Hi, Kenneth,

A good point as far as it goes on regulation for DPOs,PPOs and PPVs with one H U G E loophole.

There are no regulations if you sell your shares outside the country in which the company is registered.

The Costa del Sol is host to many spank shops selling American company shares to anybody BUT Americans. Dare I mention Texas oil and gas stocks? Canadian oil shale stocks? Development land shares?

The Old Coot

Hi Arthur, Thanks for that excellent explanation. I invest in stocks, but I've never heard of PPVs--though I knew that it was possible to invest in private companies. Seems to me you'd need to be VERY careful with these! IPOs frequently are overpriced and often drop dramatically once the excitement dies down--which is why I never buy them! For me the risk is just too great. But there is nothing wrong, or "illegal" about either investment. Investors need to be fully informed of the risks they are taking, and be sure they are comfortable with those risks. If you can't get the information you need to make an informed decision--run! An even more riskier investment is that of "penny stocks". These trade "over-the-counter" (OTC--a legitimate market) and have extremely low trading volume--which can make them hard to sell! They are frequently hyped up so others can sell their shares at an inflated price--"pump and dump" schemes. The same rules apply here--if you can't get the information you need--don't invest! Bottom line--know your risk tolerance and only invest in things that don't keep you up at night. John

More good points from you all. The 'illegal' I speak is any company that sells in the US and hasn't done the proper filings to sell/trade even if they are selling privately. Sorry if I wasn't clear.

Kenneth

Thank you Kenneth and Arthur, that is a wealth of information.