Small Companies Get Help Selling Stock
State securities regulators have made changes to a program designed to help entrepreneurs raise capital through small-stock offerings - changes they say should make the program more “user-friendly” for entrepreneurs and investors in their companies.
The North American Securities Administrators Association, representing securities regulators in the 50 states, the District of Columbia, Puerto Rico, Canada and Mexico, on Wednesday announced the changes to the program for small companies.
Called the Small Company Offering Registration, or SCOR, it has helped more than 1,100 companies - including microbreweries, small banks and technology firms - sell shares to the public, according to the regulators.
The new changes include simplifying the SCOR form, a prospectus for investors, to put it in plain English, as well as adding “real life” examples to the accompanying manual to help entrepreneurs complete the SCOR form.
Stock offerings under the SCOR program must be less than $1 million. They are not listed on stock exchanges. Once a SCOR form is completed, it must be reviewed and approved by securities regulators in the state or states in which the offering is made.
The program, available in all the states except Hawaii and Louisiana, can be used to raise up to $1 million every 12 months.
For a copy of the SCOR form and manual, contact your state securities regulator, whose address can be located in the telephone directory white pages under Government or by calling NASAA at 202-737-0900 or going to the group’s Web site at www.nasaa.org.
Fund invests north of the border
Looking for a U.S. mutual fund that invests primarily in Canadian securities?
The recent spurt in gold prices and an accompanying rise in the value of the Canadian dollar have sparked some investor interest in Canada, home to many mining and other natural-resource companies.
One potential way into that market is the WEBS Index Canada Fund (1-800-810-9327), an index fund that tracks the Morgan Stanley Capital International index of Canadian stocks.
Keep cool about Y2K
What’ll happen to your investments when the new year arrives?
The Forum for Investor Advice has published a 14-page booklet, “The Sky is Falling! Keeping a Cool Head about Y2K.” It explains what the Year 2000 computer bug is, what may happen, and how you can prepare.
For a free copy, call 1-800-200-1819 any time. Your request won’t result in any follow-up mailings or phone calls, a spokeswoman said. The forum is a nonprofit group made up of mutual fund companies, securities dealers, banks and other financial institutions.