06/30/2022
Dozens of young, budding companies that are likely to grow and prosper are intent on obtaining the capital they need to thrive in the marketplace. With their sights set on raising that money, they sell stock via private placements. Regrettably, however, there are numerous scam artists who control rancid, skeletal entities that are likewise intent on raising capital via private placements. For purposes of inducing investors to part with their hard-earned savings, these fly-by-night promoters create highly misleading portrayals. They also arrange for the stock brokers who make the underlying sales pitch to be handsomely rewarded through robust commissions. If a broker is giving you the "hard sell," take a deep breath and identify the level of commissions he will receive pursuant to a sale.
