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Can I offer equity to investors without violating securities laws in Nevada? What are the requirements?
To offer equity securities to investors in Nevada, you must comply with the securities laws of the state. The requirements for offering equity securities in Nevada are defined in NVRS 694A.010. Private equity funding is defined in NVRS 355.260.
Requirements for Offering Equity Securities
According to NVRS 694A.010, equity securities include any stock or similar security, any security convertible into such a security, any warrant or right to subscribe to or purchase such a security, or any other security that the Commissioner deems to be of similar nature. To offer equity securities in Nevada, you must comply with the rules and regulations prescribed by the Commissioner in the public interest or for the protection of investors. It is important to note that NVRS 694A.040 makes it unlawful for any beneficial owner, director, or officer to sell any equity security of an insurer if the person selling the security does not own the security sold or does not deliver it against such sale within 20 days thereafter, or does not within 5 days after such sale deposit it in the mails or other usual channels of transportation.
Private Equity Funding
NVRS 355.260 defines private equity funding as an investment in or a purchase of securities in operating businesses that are not publicly traded on a stock exchange.
Based on the information provided in the context, there are no specific requirements mentioned for offering equity securities to investors in Nevada. However, it is important to note that securities laws are complex and vary depending on the specific circumstances of the offering. It is recommended that you consult with a qualified securities attorney to ensure compliance with all applicable laws and regulations.
Source(s):
- [1.1] “Equity security” defined.
- [1.2] Unlawful sales of equity securities.
- [2.1] “Private equity funding” defined.
- [3.1] Powers additional; applicable procedures for issuing securities; issuance of securities by municipality not authorized.
- [4.1] Exempt investment advisers and representatives of investment advisers.
Jurisdiction
Nevada