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Microcap & Penny Stocks : 504 Reg D and Beyond - Going public without an Underwriter

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To: Chloe R who wrote (34)7/11/1998 4:08:00 AM
From: american dreamer  Read Replies (3) of 50
 
Chloe,
If you are considering an investment in a private company that is attempting to sell shares through a 504 without the benefit of someone in the securities business (some legitimate and competent I might add) than you should avoid it at all costs. They will never even get it funded more than likely and if they do, the odds are against them ever getting it trading. You just can't go to a market maker and get him to file your 15c2-11 for you. It just doesn't work that way.
Also, it is my experience that private individuals over value their company considerably and usually offer far less of the company for the investment dollar than is appropriate. Trust me, finding good 504 opportunities is hard enough when they are done right with people in the know... why waste your time.. and money on a company that is so arrogant as to think they can do it themselves.
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