ABSTRACT

Questions to ask before you sell, issue, or transfer any securities .......................................506 Securities commonly issued by startup companies ............................................................... 507 Selling your securities over the Internet .................................................................................. 510 Understanding accredited investors and not-so-accredited investors ................................ 510 Hiring an agent to sell stock in your company ....................................................................... 513

Although issuing securities in your company may seem like a very simple concept, even successful companies have found themselves forced to clean up problems as a result of improper stock issuances. These problems can range from minor ones that cause time and energy to clean up to major problems that bring about fi nes from the SEC.