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Yes, you can raise capital for your corporation selling shares of your corporation stocks. Capital that you can use to start up, more effectively operate, expand, and build your company profits. In addition, you can sell your companies shares each year to continue to build your business, grow and prosper.
Don’t think that this vehicle for raising corporate capital is only for large major corporation, because it isn’t. Today many small and medium sized corporations are raising many millions of dollars selling the stocks of their firms. Many of these companies are start up companies, or companies that have few or no sales. The main key to raising capital this way is the current growth or potential future growth of your firm, in short, your companies profit potentials.
There are two basic kinds of stock offerings, they are: Public stock offerings and private stock offerings. Public stock offerings involve the selling of your shares to the general public. Whereas a private stock offering involves selling your shares to private individual or investors. Moreover, public and private offerings can be divided into two main categories, namely, federally register offering and state registered offerings.
Federally registered stock offerings are offering that are registered with the Federal Securities and Exchange Commission (SEC). While state stock offerings, as the name suggests, are offerings that are registered with your state security agency, located in your state capitol.
To raise capital selling the shares of your firm take these steps:
1. Gather as much information and data as possible on the various options available to you. Do this by contacting the appropriate federal and state security agencies. This fee information will include such things as their various registration requirements, rules, and regulations.
2. Carefully review the information and data the various federal and state security agencies send you. Certain types of stock offerings have limits on the amount of capital you can raise. You should note this during your review of the information and data you received. Then based upon your review of this information and data, and the capital needs of your corporation, select the kind of offering you feel would be best for your firm.
3. Prepare the various documents and forms that are required for the particular offerings you’re making in a neat, clear, and professional manner. If you make your offering through a registered stock broker or investment banker, most of what needs to be done, will be done for your by them.
4. Make your offering and sell your stocks in compliance with all rules and regulations. You can sell your shares through a registered stock broker or investment banker, who are experts on these rules and regulations. Or, as an elected officer of your corporation you can sell your shares yourself. However, the rules and regulations involved in making, depending on the kind of offering you’re making, can be very complex. Thus, If you decide to sell your shares yourself, you will need the advice of a competent practicing attorney knowledgeable in the area of security offerings.
Now use these steps to raise the capital your corporation needs to start up, more effectively operate, expand and prosper. For the benefit of your corporation, as well as the benefit the people who believe in your, namely your investors.
Berwyn J. Kemp is a financial consultant who helps businesses get funding to start up, more effectively operate, or expand. For full information on his funding products and services call (419)243-8373 or visit him at: http://www.bkempassoc.Citymax.com, NOW!
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