I know that I have to form a corporation. But where do I go from there. Would I be able to issue stock anywhere online? Would issuing stock be the same as selling it? Do I already have to have investors on hand to invest? Any other details that would help me would greatly be appreciated. Thank You in advance for your help. As a matter of fact I would like to start a resort in Louisiana but first off get my hands on some real estate that will generate income before the resort gets launched.
2007-11-24 02:51:04 · 5 answers · asked by Anonymous in Business & Finance ➔ Investing
It will cost about $150,000 to comply with the regulations to sell stock to more nine shareholders. At that point, you become subject to most state's blue sky laws. Louisiana, being the only Code Napolean state, may be substantially different. Only a securities law attorney could answer these questions.
It is strictly illegal to sell stock online, over the phone, through the mails, or through any source viewable by the public or through the press without complying with these laws first. Plan to invest about 1000 hours in complying with the regulations, most of which will be attorney time. Further, plan about $80,000 in compliance costs per year forever.
This will not get you listed on the NASDAQ. That is a substantial amount more effort. It will just let you have a public offering.
2007-11-25 01:00:12 · answer #1 · answered by OPM 7 · 0⤊ 0⤋
If you would like to issue stock in your company, then you would have to get an investment company involved. The investment company would underwrite your stock offering to make sure you are complying with the laws set forth by the SEC and NASD. There are many investment companies out there that could help you with that. You can try an investment firm like Merrill Lynch, Edward Jones, and Wacovia to name a few. Sometimes several of those type of firms will come together to underwrite large issues for larger corporation's offerings. There are other investment companies out there that do nothing but underwrite stock for corporations, but those investment companies tend to underwrite issues primarily for large corporations.
The initial stock offering is the IPO (Initial Public Offering). A corporation will usually issue new stock when they are trying to raise money for the corporation. Then buyers buy the new stock, because they want to own shares in the corporation. Hopefully your financial statements look good, because that is one of the biggest criterion that people look for when investing in newly issued stock from a corporation. Hopefully this answers your questions. Good luck!!
2007-11-24 15:26:33 · answer #2 · answered by lmcginnis14 2 · 1⤊ 0⤋
When you form a company you can issue shares. If you want to market shares to investors you will need to talk to a lawyer because there are a lot of regulations that you need to comply with. It depends on your location but you generally can't sell investments to anyone unless you are a licensed investment broker.
2007-11-24 11:41:31 · answer #3 · answered by Ben O 6 · 0⤊ 0⤋
Though an Investment Banker.
2007-11-24 12:24:10 · answer #4 · answered by Anonymous · 1⤊ 0⤋
Just call Goldman Sachs or Merrill Lynch. They will be happy to do that for you.
2007-11-24 15:00:36 · answer #5 · answered by Anonymous · 1⤊ 0⤋