Tag Archive for Due diligence

Due diligence is a term used to describe the examination and investigation of a corporation’s books, records, management and other relevant areas in order to properly evaluate the business or investment opportunity. The process of conducting due diligence can require highly specialized skills and experience. The Financial Industry Regulatory Authority (FINRA) now requires that all broker/dealers that participate in private placements under Regulation D conduct a proper level of due diligence in accordance with FINRA Regulatory Notice 10-22

Micro-Cap Review Article – Performing Due Diligence on a Micro-Cap Oil & Gas Company

This is a reprint of the article “Performing Due Diligence on a Micro-Cap Oil & Gas Company” written by Erik Nelson, President of Coral Capital Partners, Inc. that was published in the Fall, 2011 edition of Micro-Cap Review Magazine. It takes a look at some of the essential items to consider when evaluating a micro-cap oil and gas company as a potential investment. It is an excellent primer on understanding the various terms and their definitions when looking at a potential oil and gas investment. This is the 2nd article authored by Erik Nelson to be published in Micro-Cap Review Magazine, and the 1st through Coral Capital Partners.

FINRA’s Sanction of Broker/Dealers for Lack of Conducting Reasonable Due Diligence

FINRA recently issued Regulatory Notice 10-22 which requires broker/dealers to conduct or obtain reasonable due diligence on companies whose securities they sell in private placements through the Regulation D exemption. Coral Capital Partners looks at recent FINRA sanctions of broker/dealers, and their personnel for failure to conduct a reasonable due diligence review of companies for which they raised funds for through private placement sales under Regulation D.