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2017-01-13

Tags: #investing

A Private Company can be Restricted from Publicly Advertising Stock Share Sales

By w̶i̶e̶l̶d̶l̶i̶n̶u̶x̶.̶c̶o̶m̶ author Morgan Jassen

Sometimes a private company can't legally publicly advertise selling stock shares (/partnership interests) -- there are laws restricting them from doing so in certain cases. (at certain times)

This just blew my mind. Learned it from the Rich Dad series "Own Your Own Corporation"* book.

At key times, it's the investors who must actively initiate inquiry about investing in the company . From word of mouth or from having done business or from having been personally introduced etc.

Searching more about this, it seems to be related to a "Quiet Period" (or waiting period, or cooling-off period) (https://en.wikipedia.org/wiki/Quiet_period)

My biggest take-away from learning this, is that if I want to invest in a company, *I* should go ahead and *ask* how I can invest and buy shares. Because I might not otherwise learn of an opportunity.


* Start your Own Corporation : Sutton, Garrett (https://bpl.bibliocommons.com/item..._corporation)


[2019-03-11 edit: Moved to: https://i̶n̶v̶e̶s̶t̶o̶r̶w̶o̶r̶k̶e̶r̶.̶c̶o̶m̶/2017/... .html.]