>>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.<<
I haven't, but I've seen instances in which a party is able to purchase shares/exercise stock options directly from a company without any money down.
Usually, but not necessarily, the person is a high-level company insider or a new member on the Board of Directors. [who was previously an outsider]. I'm not going to give an example since there are tons of them, just have to read the SEC filings for lots of companies. It could be also be an outsider that is somehow closely affiliated with the company or well-known by the insiders.
What happens is the individual issues a note payable (IOU) at about 8% interest, which the company accepts and is a legal contract that obligates the individual to fullfull the terms of the note (payment date/schedule, etc.)
If the individual doesn't pay up/renegs, then the company has a legal recourse to recover the money. An example of this would be VTPI. [edit: dang it, I realized I just gave an example when I said I wouldn't. Oh well :-) It involves a Picky/Sparky person.]
You know something the last time I bought furniture, I was able to buy it directly from the furniture store without having fully paid for it or anything for that matter, delivered the next day, and not have to start paying until 12 months later.
Kurt |
