Can a private organization offer its own investement program to public investors (i.e online currency such as E-Gold) with no regulation by any government agency. Are there any laws regarding this and where would be a good place to find information about this?
2007-02-05 03:49:18 · 2 answers · asked by Richard A 1 in Business & Finance ➔ Investing
A) Which is it? Private company or private organization?
B) A private company would have to register with the S.E.C as an investment company (if it is doing business in the USA).
C) For more information, go to < www.sec.gov >.
2007-02-05 03:57:49 · answer #1 · answered by Puzzleman 5 · 0⤊ 0⤋
Short answer is no it can't. It is not answerable to the SEC since it is not a public company, but any business dealing in financials has some forms of regulation attatched.
In other words, just because you are a private firm does not mean you get to run a ponzi scheme without penalty.
Insurance companies and banks are regulated regardless of stock status.
And even indivuals such as stock brokers have rules they have to follow to stay out of the pokey.
-Dio
2007-02-05 12:00:11 · answer #2 · answered by diogenese19348 6 · 0⤊ 0⤋