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North Country Alliance
Doing Business Guide.
Selling Stock In Your Company
The U.S. Congress created the Securities and Exchange Commission (SEC) to prevent companies from selling stocks and bonds on the basis of promises, with no meaningful information to support the promise. There are two primary sets of federal securities laws that come into effect when a company wants to offer and sell its securities (stock) to the public.
The Securities
Act
The Securities Act of 1933 requires companies to give investors "full
disclosure" of all "material facts" about the company, or the facts investors
would find important in making an investment decision. It also requires
companies to file a registration statement with the SEC that includes
information for investors.
The Exchange Act
The Exchange Act of 1934 requires publicly held companies to disclose
information continually about their business operations, financial conditions,
and management.
Small Business
Ombudsman
In 1996, the SEC appointed a Special Ombudsman for Small Business to serve
you and to represent the concerns of smaller companies within the SEC.
You can tell the Ombudsman your concerns about any SEC proposal or rule.
The Ombudsman also can answer your general questions or help you find
the answers to your specific concerns; please refer to the Small
Business Ombudsman web site for more information on these issues.