SEC regulations assume mezzanine financing prior a filing, while - TopicsExpress



          

SEC regulations assume mezzanine financing prior a filing, while the JOBS Act legalized graymarket (friends and family, angel investor) practices that traditionally began new corporations, regulating their operation and filings (FORM D) to protect investors and allow for community projects with *real* securities rather than *illusory donations* (kickstarter) imitating fundraising efforts. Donations are just that, and offer no guarantee, vote, or long term legal relationship with the receiving firm, based on promises and ideas that are subject to whim in execution. Stock on the other hand allows ownership, voting power, and registration of funds subject to potential buy-back or conversion as the firm grows.
Posted on: Sat, 16 Nov 2013 19:50:45 +0000

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