The Securities Lawyers Deskbook, published by the University of Cincinnati College of Law, has been a standard for professional in the securities industry. The Securities Lawyers Deskbook is currently being updated. Coral Capital Partners has published links to the various sites and regulations previously available through the Securities Lawyers Deskbook. Our goal is to provide a comprehensive source of links and reference information for businesses and other members of the investment community. We will be periodically updating and expanding the information provided.
SEC Action Against Rogue Stock Transfer Agent
Coral Capital Partners looks at a recent SEC Litigation Release concerning the activities of a stock transfer who fraudulently issued itself shares in its client companies. Stock transfer agents operate at what we feel is a key point in the securities markets. As a result we are gate keepers who are in a position to help prevent and stop securities fraud. We believe that it is especially heinous when they commit fraud. We feel that our blog on this topic, along with the associated SEC Litigation Release and Complaint will be an interesting read.
The Importance of a Financial Model
Coral Capital Partners discusses the importance of a proper financial model, the financial statements that need to be included and the expectations of potential investors. Far too often a financial model and business plan are two (2) items that easily overlooked or dismissed by business owners or management. Coral Capital Partners believes that a financial model and a business plan are two (2) critical items that every business needs.
Market Manipulation and “Noneconomical Trading”
Coral Capital Partners looks at a SEC Enforcement Action for market manipulation and non-economical trading. This is an extremely interesting look at the manipulation of the public market for a micro-cap company’s common stock, how it was accomplished, and the penalties imposed. We also look at the SEC ‘s definition of these types of market manipulation and where they run afoul of the Exchange Act of 1934. This blog and the associated SEC Litigation Release and Complaint filed in Federal Court provide a very interesting read.
A Few Thoughts on a Proper Business Plan
Coral Capital Partners discusses the importance of a proper business plan, its uses and benefits. A well written business pan is a key and vital document that all businesses should have. It should show where your business is at, how it got there, and where it is going; and very importantly how it is going to get there. It needs to be comprehensive in its explanation of the business, answer the questions investors may have, and explain the risks a business is facing. At the end of the day it should give investors a level of comfort that will allow them to feel comfortable making an investment.
A Look at the Penalties for Broker/Dealer Failure to Obtain Due Diligence Under FINRA 10-22
FINRA Regulatory Notice 10-22 requires broker/dealers to conduct or obtain reasonable due diligence on companies whose securities they sell in private placement transactions through the Regulation D exemption. Coral Capital Partners looks at the penalties FINRA recently imposed upon broker/dealers and registered individuals for their failure to conduct reasonable due diligence in accordance with FINRA Regulatory Notice 10-22 on companies for which they are raising funds through a private placement offering.