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Re: stockhunter-ny post# 30658

Friday, 07/21/2017 10:17:31 AM

Friday, July 21, 2017 10:17:31 AM

Post# of 30846
http://www.investopedia.com/terms/s/sec-form-1-a.asp

So let us explain how it works. Essentially as a security holder you are a middle man. You take the bumps out of the product offering.

A contract is established that grants you time should it be a service the company is offering or a product and many times a combination of both.

This is collateralized by the payment of cash to the company. Time bought is represented by outstanding shares owed while equity and treasury stock is actual product or raw material that time bought will transform into a product or service.

So let's look at a unfilled contract derived by share prices being to low. We then will examine how forward splitting the shares can boost the fulfillment of the contract.

Breaking a contract comes with a penalty due to the goodwill the company has put forward in the form of advertisements, fixed asset costs ect.

This breaking of a contract will often result in the service or product being returned back to the company. The company will carry on that offered the security but the middle management and public entity often will fold.

To much equity and outstanding debt is not what one wants too see along with unfulfilled liability on the contract between the two parties involved.

So let's step up and support this offering to take the liability of the books.

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