Baron Capital Enterprise Inc (BCAP)

[RyGuy]

Buying convertible debt or making private placements in small public companies is not illegal. In fact it was written into the provisions of the 1933 Securities and Exchange Act by Congress in 1982.

You can do it, any one can do it if you have the personal means to do so.

When you make such a transaction you are essentially a share holder just like every other share holder. You benefit greatly when the stock goes higher, just like every other shareholder.