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Issuing stock in a Small business

Discussion in 'Banking, Finance, Investments' started by unlawd, Apr 25, 2017.

  1. unlawd

    unlawd Law Topic Starter New Member

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    A small business (C Corp) is authorized to issue 30,000 shares of stock. The company is an internet provider so there are "members or subscribers".

    An initial offering was done at $50 a share for a time. to all subscribers and $28,000 was raised. Another offering is being done currently at $30 a share. I know stock values go down after an offering so that is not THE issue.

    The issue I have is that the stock offering may have been presented to a select number of individuals and not to everybody as a whole. It doesn't make sense (legal) to me that only a few are given the opportunity to purchase at a lower value and not to all subscribers. I have tried to contact the Securities division but they can't give legal advise. I would think there would be a statute that regulates the offerings.
  2. adjusterjack

    adjusterjack Super Moderator

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    There are several and they are listed on the SEC website:

    SEC.gov | The Laws That Govern the Securities Industry


    1 - Read them all.

    2 - Hire a securities attorney.

    3 - File a complaint with the SEC and see where it gets you.

    4 - Forget it and get on with your life.
  3. army judge

    army judge Super Moderator

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    What the issuer of the stock calls "stock", the SEC might call SCAM.

    What you describe as to what was done, makes me giggle.


    Because someone is simply getting others to give him their money.

    The people GIFTING the guy thirty bucks saved themselves thirty bucks, but still got CONNED.
    unlawd likes this.

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