SCOR FAQ. Part 3
Description
This article is from the Investing Articles: Public Offerings: IPO and DPO series.
SCOR FAQ. Part 3
7. What is the difference between a private placement and a SCOR
LPO?
There are two substantial differences between a private
placement and a SCOR offering:
a. A SCOR may be offered to and subscriptions accepted from any
number of unaccredited or accredited investors . As for private
placements in most states, the company is limited to just 10 offers
/year, while some states permit subscriptions from 35 unaccredited
investors and unlimited accredited (wealthy) investors.
b. A SCOR offering may be advertised to the public and promoted
by direct mail, Television, Radio, Internet, cold calling, public
meetings and many other forms of promotion generally available.
Private placements, generally, may not be advertised in any way.
There is a much higher chance of funding your SCOR offering than funding a private placement.
8. Is there any guarantee of success that a SCOR offering will
work for your company?
No. --- The success of the SCOR offering depends upon a number of
factors including (not
exhaustive)
i. Your "story" to date.
ii. The product or service offered.
iii. The quality of the management team.
iv. The stock retail program, particularly
- the marketing and promotional activity that generates the
initial interest.
- the quality and suitability of the prospect base.
- the ability of the broker to respond to questions and sell.
v. The investors' perception of the risk factors. An investment
decision in an early stage company is
a high risk and a very personal decision.
vii. The amount of time and skill dedicated to "retailing" the stock and communicating with potential investors.
9. Is there a minimum or maximum that any one investor may
invest?
There are no absolute rules. We will sometimes recommend a minimum
investment of $500 but this may be considerably higher in cases where
the prospect list is particularly affluent. In no case can you accept
an investment from an investor if the investment's total loss would
have a significant effect on his or her net worth.
Continue to:
My Books
