Ask anyone who might be even slightly involved with corporate securities law firms, and they'll tell you the agents at the Securities and Exchange Commission have been pretty busy over the last couple of years. In 2014 alone, the SEC's enforcement division brought 755 cases, and collected a record $4.1 billion, charging more than 135 parties with violations relating to reporting and disclosure, and another 80 cases involving trading on the basis of inside information.
In other words, anyone who doesn't handle their public or private placement securities above board is going to need a corporate securities lawyer, because the SEC will come after them. While that sounds like a relatively simple thing to do, public and private placement offerings are legally complicated, which makes it very easy for companies to inadvertently break corporate securities law.
Fortunately, the SEC offers helpful advice investors can use to avoid breaking the law. Here are just a couple tips that are worth bearing in mind.
Patience is a virtue, and all good things are worth waiting for. Don't try to cut any corners when working on an initial public offering. You need to make sure all of your forms are filled out correctly, and go through the proper channels.
You're going to need legal help. That's a fact. Although it is theoretically possible to do a public or private offering without any legal counsel, it's not wise. IPO attorneys do it for a living, and know all the ins and outs of these complicated financial matters. They have the experience you need to not only get things done, but get them done the correct way.
Corporate securities law is complicated, which is why it's vital to get the help of legal experts, such as IPO attorneys, when necessary. If you have any questions, feel free to share in the comments.