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LEGAL TERMS DIRECTORY
A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z Cheap Stock When insiders have invested in the company within three years before the public offering, the amount they paid will be compared with the offering price to the public. A big difference raises the cheap shares issue, which must be dealt with satisfactorily for the public offering to be cleared through SEC and state blue sky laws. A NASAA Statement of Policy defines "cheap stock" and provides for their escrow as a condition to qualify the public offering in some states. While in escrow the shares cannot be traded. Release from escrow is typically conditioned upon meeting a three-year earnings-per-share test equal to 5 percent of the public offering price, a three-month period of trading at 175 percent of the offering price, or six to nine years after the offering. Welcome to our Legal Directory
Legal & Compliance, LLC is a national corporate and securities law firm that focuses on the specific needs of OTCBB and Bulletin Board Companies. Focus areas include but are not limited to:
Legal & Compliance, LLC 330 Clematis Street, Ste. 217 West Palm Beach, FL 33401 Phone: 800-341-2684 Local: 561-514-0936 Fax: 561-514-0832 E-mail: LauraAnthonyPA@aol.com www.PublicCompanyCompliance.com |