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Post by Franko10 ™ on Mar 9, 2005 13:39:37 GMT -5
The Scoop on Small Cap Financing
Two forms filed by many companies include the SB-2 and S-8. Here is a description of the forms, taken from the Edgar Online site. A SB-2 is an optional form for the registration of securities to be sold to the public by small business issuers.
The form S-8 is for securities offered to employees pursuant to employee benefit plans. Be careful when corporations file these forms, as some of the dilution can be the start of a death spiral. If the securities offered are a great percentage of the shares outstanding, then be prepared for it to have an adverse affect on your investment. Also, if these forms are filed constantly for employee benefits or capital to run a company, be on the lookout for cash burning machines and how the more stock put on the market will ruin your investment.
Finally, be aware of the use of funds and where exactly the funds are going...to develop a new product or straight into a CEO's wallet.
Two forms filed by many companies include the SB-2 and S-8. Here is a description of the forms, taken from the Edgar Online site. A SB-2 is an optional form for the registration of securities to be sold to the public by small business issuers.
The form S-8 is for securities offered to employees pursuant to employee benefit plans. Be careful when corporations file these forms, as some of the dilution can be the start of a death spiral. If the securities offered are a great percentage of the shares outstanding, then be prepared for it to have an adverse affect on your investment. Also, if these forms are filed constantly for employee benefits or capital to run a company, be on the lookout for cash burning machines and how the more stock put on the market will ruin your investment.
Finally, be aware of the use of funds and where exactly the funds are going...to develop a new product or straight into a CEO's wallet.
