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Re: psyfty post# 102760

Friday, 12/02/2016 11:49:22 AM

Friday, December 02, 2016 11:49:22 AM

Post# of 232560
Below seems like a logical way to raise funds needed. Less hassle than offering more public shares and more control...


Issuing private stock is a time-tested way to raise money for your business. Private stock offerings are a form of equity financing; the investors who buy the private shares acquire an ownership stake in your company. You give up sole ownership of the company in exchange for capital needed to grow your company. Later on, you can pay these investors back and reacquire their equity stakes, or they might remain as part owners until the business is sold and reap a portion of the sale profits.

Private stock placements are attractive to many business owners because they offer more control than if the owners sold stock to the general public through an initial public offering. IPOs sell stock to hundreds or thousands of investors, while a private offering usually limits the number of stockholders.

Public stock offerings also require extensive public disclosure filings and adherence to Securities and Exchange Commission rules. Most private stock offerings do not need to be registered with the SEC and can be prepared fairly quickly and at a modest cost. If your business isn’t a likely candidate for a bank loan, a private stock offering can be a good alternative means of securing the money you need.