IFGX Blog

Regulation A, generally known as Reg A, exempts public offerings from registration. However, the disclosures needed within this exemption are analogous to those needed in registered offerings. Companies that take advantage of the exemption have significant benefits over others that must register completely.   Firms that use a Reg A can sell and offer their securities to the public in two tiers, each with its own set of rules: Tier 1 and Tier 2. A company’s size determines the different tiers, but there is one requirement that these companies must meet- they must submit an offering statement with the Securities and Exchange Commission, as well as an offering circular, that represents a disclosure document for investors.    Tier 1 offerings are those that are worth up to $20 million in a 12-month period, with a max of $6 million in secondary sales by the issuer’s affiliates. Offers and sales that are related to Tier 1 are susceptible to qualifying cri...

For beginners, putting together a profitable investment portfolio is a difficult undertaking, but there are plenty of ways to do so. The ideal strategy for a given investor will be determined by a number of characteristics, including risk tolerance, time frame, and the amount of capital available for investment.   In terms of investing, growth can be explained in various ways. In the investment world, growth is typically characterized as capital appreciation, which occurs when the price or worth of an investment rises during the time. Short-term and long-term growth are both possible, but significant short-term growth involves a higher level of risk.   The next strategy is purchasing and holding investments and represents likely the most straightforward technique for generating growth that can even be one of the most beneficial throughout time.   This method applies to those who pay closer attention to the markets or particular assets and can outperform the bu...

If you want to sell restricted, unregistered, or control securities in a public market, you will need to get an exemption from the SEC’s (The Securities and Exchange Commission) registration requirements.  The rule lays out a series of requirements that a shareholder must complete in order to sell or resell unregistered, “restricted”, or “controlled” securities in the open market.   Restricted securities are those purchased from the issuing corporation or an affiliate of the issuer through unregistered, private transactions.    The securities owned by an affiliate of the issuing firm are known as control securities, so this person is a person who has a controlling relationship with the issuer, such as an executive officer, a director, or a major shareholder.   So, if you are in this position and intend to sell these types of securities, you can comply with Rule 144’s requirements.   As we mentioned in the previous paragraphs, restricted, unr...

To trade on the exchanges, any security or stock requires a market of sellers and buyers. So, what are their main  role,  and who the market makers are?  They are traders, sort of speaking “creators of a market “, for securities by being ready to purchase or sell at any time. They benefit from the difference in the bid-ask spread and secure liquidity and depth to markets.   Typically market makers are brokerage firms, large banks, or other financial institutions. Their job is to ensure that there is enough trading activity for traders to run smoothly. As we can see, they are a necessary link in the chain, and without them, there’d certainly be minimal liquidity.   To put it another way, if there are not enough buyers in the market, investors who want to sell assets will be unable to do so, without market makers’ assist, because they enable keep the market running, which means they will be there to buy it. Correspondingly, if you want to purchas...

We can begin with the fact, that the stockbrokers are mainly intermediaries.  They are financial specialists who place orders on behalf of clients in the market. Stocks are purchased and sold on stock exchanges like the New York Stock Exchange, the Nasdaq, and OTC markets, and most investors who would like to trade stocks require broker assistance.    Stockbroker capabilities include responding to the client’s requirements and interests, as well as comprehending market fluctuations and generating consistent, predictable profits. Considering the market’s sensitivity, this could be a risky task.   Brokers are required to register with FINRA (Financial Industry Regulatory Authority). There are several types of brokers, which can be categorized into two groups: full-service brokers and discount brokers.   Full-service brokers are traditional brokers who offer extra significant services to their clients, including trading stocks, investment...