Raising money from investors for your business involves understanding complex securities rules and regulations and federal and state filing requirements for proper compliance. Whether you own a small business or a large corporation, it is vital to consult an expert to ensure that you are compliant with all the necessary securities laws; these laws may
Many companies and consultants help others comply with eXtensible Business Reporting Language (XBRL) formatting. You may not know everything about XBRL, but it’s a good idea to learn from your providers and experts about what to do and when. You will be more prepared and may make fewer mistakes in the future. Complying with XBRL
Investing is an effective way that people can increase their monetary wealth. It allows people to generate a higher income and acquire funds that will help them protect their financial future going into retirement. The income they generate can even be set aside for their children, be distributed after they pass away, or when their
Chairman Jeb Hensarling sponsored the Financial Choice Act (H.R. 5983) on September 13, 2016. This bill alters many parts of the Dodd-Frank Wall Street Reform and Consumer Protection Act, as well as addressing long-standing and recent issues. Financial Policy Regulation Changes: Leverage Ratio Under a leverage ratio, all assets are treated the same regardless of
DTC, or Depository Trust Company, founded in 1973, is the largest depository globally with over thirty-five trillion dollars worth of securities on deposit. It operates a securities settlement system and provides services, including depository and book-entry services. Other services also include dividend and interest payments, tender and rights offers, and corporate reorganizations events like a
On October 26, 2016, the Securities and Exchange Commission adopted amendments to change Rule 147 and creating new Rule 147A. Additionally, amendments will be made to Rule 504 of Regulation D. These changes are intending to modernize how issuers can raise money to fund their businesses. Amendment to Rule 504 Rule 504 of Regulation D
When you attempt to start any small business or other venture and need funding, crowdfunding is an excellent option. Crowdfunding allows for funding through various investors and entrepreneurs using different web portals. Often, the desired funding involves contributions made by investors, which is known as securities-based crowdfunding. Since this type of crowdfunding requires you to
A transfer agent is a third-party financial institution that is appointed by a corporation, mutual fund, or company to act as the master shareholder recordkeeping provider and maintain the stockholder ledger and process any changes to it. In addition to maintaining the master shareholder list, a transfer agent’s primary tasks include recording ownership transfers (also
The SEC recently proposed several amendments to the Investment Advisers Act of 1940, commonly referred to as the “Advisers Act.” These amendments specifically focus on rule 203(l)-1 and rule 203(m)-1, the definition of a venture capital fund, and the private fund adviser exemption. They are designed to better reflect changes from the Fixing America’s Surface
On June 17, 2016 the SEC approved IEX as a national stock exchange. The approval marks the first time since July 2013 that the SEC has sanctioned a new trading exchange. What is IEX? IEX stands for Investors’ Exchange and is a national stock exchange designed to slow down trades used by high-frequency traders in
The OTC Markets group recently implemented several amendments regarding the initial qualification process for the OTCQX that became effective June 13, 2016. These rules will affect companies who are performing an IPO while attempting to join OTCQX. These amendments also apply to companies that have not had a prior public market or a Form 211
There are many ways to invest; you can invest your money through owning collectables, owning a home, opening a savings account, or investing in a company. Below are five benefits of investing through equity crowdfunding. Dividend Income If you invest in a company that offers stock dividends, you could have a consistent source of ongoing
In order to operate, a crowdfunding service intermediary is required to register with the Securities and Exchange Commission (SEC) either as a broker or funding portal. Funding portals are designed to be engaged in managing securities transactions for the accounts of others through an independent crowdfunding website. This article is provided as a compliance guide
Many large companies in today’s business industry have started offering stock options for their employees. Consequently, businesses are striving to find a convenient and cost-effective way to manage their stock option compensation plan. Colonial Stock Transfer offers a web-based software solution, which provides businesses the ability to conveniently manage their options and investors. These stock
The H.R. 3784 SEC Small Business Advocate Act was passed by the House of Representatives to establish an Office for the Advocate for Small Business Capital Formation. If passed into law, the Act will allow the office to provide the SEC with advice regarding the interests and well being of small businesses and investors. However,
Before the general meeting of an organization or a mutual fund, shareholders receive a package in the mail that contains a number of documents: financial reports, investment data as well as documents that announce critical issues ─ for example, proposals for changes to an organization’s share structure or their mergers and acquisitions. Unit holders or
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