Amazon Natural (AZNT) Message Board

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Microcap & Penny Stocks : Amazon Natural (AZNT)

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To: Jeffrey S. Mitchell who wrote (5149)	9/13/1998 3:13:00 PM
From: Janice Shell	Read Replies (1) of 26163

Was just thinking of an amusing idea. Let's say you're a company insider, and you'd like to be RICH. Well, you know what they say: takes money to make money. So you cut yourself a Reg D, Rule 504 deal. You sell yourself--as a trust, a relative, whatever--some stock. You pay a million bucks for it: Rule 504 of Regulation D allows companies to raise up to $1 million per year in "seed capital" without complying with the registration requirements of the Securities Act. In 1992, the Commission amended Rule 504 to eliminate the federal limitations on these offerings other than the general antifraud provisions and the requirement to file a notice with the Commission 15 days after the first sale. The review of these offerings have therefore been delegated to the state securities administrators who for the most part require registration of such offerings. Now. You give yourself a REALLY BIG discount. Say you sell that million bucks' worth of stock to yourself at, oh, $0.01 a share. Or less, if you like. Who's gonna stop you? You'll end up with quite a large position, won't you? Which you can eventually sell at market value...

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