Equity Offerings

Many value-added businesses raise business equity through equity offerings to a wide range of potential investors.  The investors may just consist of the founders of the value-added business.  Conversely, the investors may be all of the farmers who will patronize a value-added cooperative.  Also, it may be farmers and other rural residents who will invest in the business.  Regardless of who invests in the business, the selling of securities is a complex and serious business.

The Securities and Exchange Commission (SEC) has a significant impact on how value-added businesses can raise equity for a business venture.  The rules are complex and require the assistance of legal help.  This information will assist you in understanding the general concepts and procedures.

For more information on this topic, see the links listed below of articles posted on related Web sites.

Public Offerings

  • When Employee Ownership Makes Sense -- Kent State University -- The mushrooming of employee ownership over the last decade is due in large part to the legal recognition of ESOPs in the Employee Retirement Income Security Act of 1974 (ERISA).

Securities and Exchange Commission Issues

Revised May, 2019.