.Managers who are organizing an investment fund (or even raising money for an operating company) at times want to make the investment more attractive to investors by adding provisions that require at least some payments to the investors before...
A number of years ago the SEC effectively banned the use of finders to locate investors for securities offerings that cross state lines. Still, a few states allow finders for their intrastate offerings (offerings made entirely within that...
Given that the SEC is on the verge of releasing its final regulations that will allow public advertising of Rule 506 offerings, it’s a good time to review traditional Rule 506 offerings.
A Rule 506 offering is the primary type of private...
Several securities-offering exemptions allow “sophisticated investors” to invest. The question is how to determine when potential investors are sophisticated.
Federal Rule 506 offerings (and the California 25102(f) offering)...
The investor subscription agreement is the third major document used in private placement securities offerings, along with the investor questionnaire and the private placement memorandum or PPM. A number of provisions should be included...
A private placement memorandum or PPM is the main information document for potential investors. It’s like a business plan on steroids, adding required and recommended details and legal language for an offering. It goes by many...
One thing to consider when planning an offering is what investor qualifications you can live with. In making this decision it’s important to keep in mind that the definition of “accredited investor” is now more limited than it...
President Obama signed the A Jumpstart Our Business Startups Act (the JOBS Act) on April 5. Part of this Act authorizes crowdfunding for the first time. (Up until now, crowdfunding could only be done legally by a company effectively...
This article details an additional requirement which California imposes on real estate brokers who want to operate under a fictitious business name (also called "doing business as", or a "DBA name"). California requires that real estate brokers...
This article by Natalia Thurston details difficulties caused by the Visual Artist Rights Act's protection of the "integrity" of artists' creations.
- Summary by FizzLaw Team