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

  • Going Public – Small Business Notes -- When your company needs additional capital, "going public" may be the right choice, but you should weigh your options carefully.
  • Initial Public Offerings – Small Business Notes -- Initial public offerings (IPO) are often considered to be the ultimate goal for any entrepreneurial venture. Is an IPO really the right goal for your venture.
  • Initial Public Offerings, the Basics – Lawyers.com -- Primarily used to raise investment capital, Initial Public Offerings (IPOs) and Direct Public Offerings (DPOs) may be a way of maximizing the return from the sale of your business.
  • The ABCs of IPOs – Entrepreneur.com -- If you're thinking about launching an initial public offering for your company, this step-by-step guide to IPOs will familiarize you with the process. --
  • Direct Public Offering – Entrepreneur.com -- Take your business—and your quest for funding—directly to the public by selling shares in your company.
  • Initial Public Offering – Entrepreneur.com -- Ready for a whirlwind ride? Take the ultimate funding trip by going public.
  • 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).
  • Rule 504 – MoreBusiness.com -- As part of its program to simplify access to the capital markets, the SEC adopted the Small Business Initiatives ("SBI") in 1992.
  • Reverse Merger – Entrepreneur.com – Take your private company public the easy way by purchasing a dormant, public company.

Securities and Exchange Commission Issues

Links checked July 2014.