Sec Form D And Related Securities Laws: Q&A For Entrepreneurs

As I mentioned in a recent post, one of things that surprised me when I moved to Southern California from New York City in 2005 was the lack of sophistication of some of the players in the so-called “middle market.”  Indeed, I was particularly surprised to see so many investment bankers and other intermediaries running around and raising capital for private companies without being registered as a “broker-dealer” with the Securities and Exchange Commission (the “SEC”).  As I have previously discussed (see mistake #4 here ), this is a huge potential problem for the issuer, particularly in light of the recent changes to SEC Form D.  Accordingly, I thought it would be helpful to entrepreneurs to provide them with a basic understanding of the new, revised Form D and related securities laws via a question-and-answer format.  (more…)

Tags: broker-dealers, EDGAR, entrepreneur, entrepreneurs, Form D, Regulation D, Rule 506, SEC, Securities Act, start-up, start-up companies
Posted in Entrepreneurship, Securities Law Issues | 12 Comments »