Abstract
Regulation A+ creates options for firms to raise capital beyond a Reg D and without a public registration but instead via a mini-IPO that can be accomplished with less cost, time commitment, and resources than a full-blown IPO. However, an IPO is an IPO and, whatever type you choose, the outcome and many of the related issues are similar. Let’s start with a basic question.
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One thing to be aware of when applying to a Regulation A+ offering is that a formal underwriting or investment bank is not necessarily the norm to establish the value of the company’s stock. While Regulation A+ securities can be freely traded immediately, markets are not as established as with registered securities and the value is more likely to be set by the issuer who is selling the security. The process described above is even more important to be followed by executives because setting unrealistic stock values that are not supported by market data can lead to added company liability.
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© 2015 Paul M. Getty, Dinesh Gupta, and Robert R. Kaplan, Jr.
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Getty, P.M., Gupta, D., Kaplan, R.R. (2015). Overcoming Challenges to Going Public. In: Regulation A+. Apress, Berkeley, CA. https://doi.org/10.1007/978-1-4302-5732-5_2
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DOI: https://doi.org/10.1007/978-1-4302-5732-5_2
Publisher Name: Apress, Berkeley, CA
Print ISBN: 978-1-4302-5731-8
Online ISBN: 978-1-4302-5732-5
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