Jobs Act 101Are Rule 504 Shares Free Trading?
Rule 504 (“Rule 504”) of Regulation D of the Securities Act of 1933, as amended (the “Securities Act”) provides an exemption from the registration requirements of the federal securities laws which allows issuers to offer and sell up… Read More
How Can I Raise Capital After the JOBS Act?
A private or public company can raise capital in a variety of ways. Traditional sources of capital for companies include loans from financial institutions such as a bank, or from friends and family as well as receivable financing.
SEC Releases Regulation A Proposals
On December 18, 2013, the Securities and Exchange Commission (the “SEC”) voted to propose rules intended to increase access to capital for smaller companies. The SEC’s proposal is based upon Regulation A. Regulation A is an existing exemption from registration… Read More
Rule 506(C) Verification of Accredited Investor Status
Rule 506(c) of Regulation D of the Securities Act became effective on September 23, 2013. The rule fundamentally changes how private placements are conducted, by allowing issuers to engage in general solicitation and advertising of their private placements if specific requirements… Read More
Equity Crowdfunding
Since the JOBS Act was signed into law in April 2012, market participants and observers have anticipated the release of the regulations governing equity crowdfunding. On October 23, 2013, the Securities and Exchange Commission (“SEC”) released Regulation Crowdfunding. … Read More
The Role of the Securities Attorney in a Private Placement Offering
Rule 506(c) fundamentally changes how an issuer conducts its private placement. The rule allows issuers to engage in general solicitation and advertising of their private placement if specific conditions are met. These requirements include that sales may only be… Read More
What Causes a DTC Chill? Going Public Lawyers
The Depository Trust and Clearing Corporation (“DTCC”), through its subsidiaries, provides clearing, settlement and information services for securities. DTCC’s subsidiary, the Depository Trust Company (“DTC”) was created to improve efficiencies and reduce risk in the clearance and settlement… Read More
The Securities Exchange Act of 1934
The Securities Exchange Act of 1934 (the “Exchange Act”) grants broad authority to the Securities and Exchange Commission (“SEC”) to oversee the securities industry. The SEC’s authority includes the power to register, regulate, and overseebrokerage firms, transfer agents, and… Read More
What Is a Transfer Agent ? Going Public Lawyers
A shareholder of any company can own securities and transfer the ownership of those securities. Their ownership is reflected on the issuer’s shareholder list. A transfer agent’s role is to issue and cancel certificates to reflect changes in ownership of… Read More
Crowdfunding And The JOBS Act
On April 5, 2012, President Obama signed the Jumpstart Our Business Startups Act (the “JOBS Act”), into law. The JOBS Act is comprised of a number of smaller bills that reduce the regulatory burdens confronting emerging companies in… Read More