What’s in a Name? Accredited Investor Explained

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Whether you’re looking to raise capital for your business or are an investment adviser selling securities, you’ve probably come across the term accredited investor. The concept of an accredited investor was defined by the Securities Act of 1933 (“Securities Act”), and is a critical component of the law that was designed to protect investors from fraudulent
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5 Mistakes That Could Ruin Your Capital Raise

Posted by Eli Solomon

 

Raising capital is one of the most challenging aspects of operating a business, and it is absolutely critical for business success. Often times, companies are unaware of the legalities involved during the capital raising process, including securities laws. Failure to comply with these laws could result in SEC action, lawsuits and potentially having to return
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New SEC Ruling Makes It Easier Than Ever to Have an IPO

Posted by Eli Solomon

 

There’s good news for companies that want to go public: they can now file confidentially with the SEC. Previously, companies were required to disclose sensitive financial and business information publicly, which was not always advantageous due to the scrutiny the information received from investors and competitors. The new changes were effective as of July 10,
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Understanding General Solicitation in Regulation D Offerings

Posted by Eli Solomon

 

When raising capital under Regulation D, small businesses may need to find new investors to fund their operations, future growth or other strategic initiatives. The act of publicly marketing a security offering to new investors is known as General Solicitation, and until recently was banned under Regulation D filings. The SEC relaxed General Solicitation rules
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Do Securities Laws Apply to Employee Compensation Plans?

Posted by Eli Solomon

 

Offering stock option grants and rewards to employees can be an effective way to attract and retain talent. Any company offering equity must however be in compliance with blue sky laws, even if the purchaser of the stock is an employee and not an “investor”. Blue sky laws vary state by state, and therefore the
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A Guide to State Blue Sky Laws

Posted by Eli Solomon

 

When small businesses attempt to raise capital with a Regulation D offering, they are required to submit blue sky filings within the state that prospective investors reside. Blue Sky Laws vary greatly state by state and can make the capital raising process complicated and confusing. In this post, we discuss some of the issues presented
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Do Securities Laws Apply to the Sale of Stock to Friends?

Posted by Eli Solomon

 

If you need investors to expand your business, you may have considered selling stock to friends and acquaintances. And you may have wondered whether you can do this without having to abide by securities laws. So do securities laws apply when you sell stocks to friends? The short answer is: yes, they do. However, if
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For Small Businesses Raising Capital, New Regulation D Amendment May Help

Posted by Eli Solomon

 

If you’re a small business trying to raise capital, there’s good news to report. Recent changes to the SEC’s Regulation D may make things easier for you. Here’s an explanation of the changes.   Regulation D before the change. Prior to these recent amendments, certain businesses could claim an exemption from registration under SEC rules
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Blue Sky Laws: What You Need to Know

Posted by Eli Solomon

 

If you’re offering a security for sale to the public, you have to comply with blue sky laws. But these laws are complex and differ from state to state. They can be confusing. So here are the essential things you need to know about them.   What are blue sky laws? Blue sky laws are
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