Traded Private Placements

Private offerings can be made with online press releases and sponsored links; online brochures, investment profiles, promotional emails; as well as business plans, private placement memorandum, offering documents, profiles of key corporate officials, and other promotional material.

Private offering shares that do not trade on The NASDAQ Stock Market (NASDAQ OMX), the New York Stock Exchange (NYSE Euronext), or other registered national securities exchanges, may be quoted on an over-the-counter (OTC) quotation platform such as the FINRA operated Over-the-Counter Bulletin Board (OTCBB) and the platform operated by OTC Markets Group, Inc.

Generally, there few standards that a company must meet to have its securities quoted in the OTC market, as long as full disclosure is made and no fraudulent statements are made.

Companies file reports with the Securities and Exchange Commission (SEC). See the SEC’s EDGAR database.

Not all financial information filed with the SEC, or published elsewhere, needs to be independently audited. A investment advisor or other agent, if any, must be properly licensed and his or his firm must be registered with FINRA, the SEC and a state securities regulator—depending on the type of business the firm conducts. For due diligence, an investor can look at FINRA’s BrokerCheck, and also the contact the applicable state securities regulator.

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