MGMT 209 Lecture Notes - Lecture 7: Corporate Crime, Sarbanes–Oxley Act, Insider Trading
Document Summary
This has to be filed along with a prospectus: a disclosure document which describes the security being sold, the financial operation of their business, and the risks of the security. They basically allow investors to evaluate risks before choosing to invest in a certain security: exempt securities. There are some securities which do not have to be registered with the sec before issuing to the public. This means they don"t actually sell it, but say hey who"d be interested in this? to get the numbers, then decide. You do not have to register to test the waters. (b. 2. d) using the internet some companies sell their securities online. This is a good option for small companies and start-ups that find it hard to get big investors. If you offer the securities online, you do not have to deal with the long and resource exhausting registration process.
