As required by the JOBS Act, the SEC proposed new rules to lift the ban on general solicitation and advertising in Rule 506 offerings to accredited investors. If you were hoping for clarity, you will be disappointed. The SEC tells us that issuers must take reasonable steps to verify that the purchasers of securities are ... [ more » ]
Venture capitalists over time have turned preferred stock into an art form. Not only do VCs use preferences for down-side protection, they also demand features that ensure that they get a sizeable return on their investment before the founders see one red cent. One of these features is the liquidation preference, for which VCs may ... [ more » ]
There is no legal requirement to issue stock certificates in most jurisdictions. Many corporations still issue them, but that is out of habit and custom. When is the last time you bought shares in a public company and asked your broker for a stock certificate? The answer is probably never, and that is because public ... [ more » ]
