Gary, Perhaps, you are correct. I am basing my opinion on what would most likely be construed as sound business practice and common sense;not what a charter or state law states. Business is business and there are accepted business practices that take place in all business dealings. This is a real world fact.
I know of no legitimate company ( legit) is the key word here, who issues shares of a stock; prior to payment. To say this happens is tantamount to saying you buy groceries; take them home and eat them and if they were good, you return to the place of purchase and pay for them. This is folly. JMO; not a legal one.
In the event that someone pays for stock and does not receive what they paid for they have recourse through the legal system. Yes, it would take awhile but that is the chance one takes in purchasing stock directly from a company.
Yes, you are correct about transfering stock to an individual, ie., family for instance.
However, I would be highly suspect of anyone transfering stock to another out of "friendship"; especially if both parties were involved with the same company and business interests. I am not saying it is not done; however, it would send up a very large red flag. IMHO... Not a legal one.
I realize I do not possess as much legal knowledge as others who post here but, COMMON SENSE goes a long ways; always has and always will.
If there is anyone reading this post who has purchased stock directly from a company and received their stock, PRIOR, to having fully paid for them; please advise us of such. Please be kind enough to furnish as much detail as possible, ie, the name of the company and a few basics would suffice.
Thanks,
Dusty |
