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Microcap & Penny Stocks : FAMH - FIRAMADA Staffing Services -- Ignore unavailable to you. Want to Upgrade?

To: Double Dipper who wrote (20705)	6/11/1998 12:58:00 AM
From: CO	Read Replies (3) \| Respond to of 27968

The article is referring to 504 shares that are used to raise capital for companies, not shares that are free trading. FAMH did a 504 offering last fall through Alexander Wescott. They did a 1 million dollar offering. In 1992 the SEC put into force Rule 504 of Regulation D allowing small companies to sell up to $1 million of stock without a SEC registration. The idea was to cut out the red tape for small companies. But it actually caused more fraud. If a company qualifies for this exemption they do not have to supply financial information to regulators. And the shares can be sold immediately without any restriction. What the new ruling would do is protect the current shareholders from the company selling shares to raise capital without any restriction. If the ruling passes, it would require that the 504 shares be issued with a one year restriction. That would mean they would have to be held for a year before they could be sold. I think this ruling would help to protect your current investments from being diluted as easily. It would make BB companies more accountable when selling additional shares. The rule has nothing to do with your normal free trading common stock. Cheryl