elective-stereophonic
elective-stereophonic
Is it possible to trade my Cell 411 shares legally on the asset exchange? singapore
Please login or register.

Login with username, password and session length
Advanced search  

News:

Latest Stable Nxt Client: Nxt 1.12.2

Author Topic: Is it possible to trade my Cell 411 shares legally on the asset exchange?  (Read 2794 times)

Marc De Mesel

  • Hero Member
  • *****
  • Karma: +228/-83
  • Offline Offline
  • Posts: 643
    • View Profile

So I'll get my shares of Cell 411 Inc soon in the mail that I bought last month.

I'd like to already sell some if the price is right.

The only thing I would need from the buyer is his name and address as the company is registered in Delaware and required to keep a stock ledger of all the names and addresses of it's shareholders.


I could just sell them privately, after which the company will send new stock certificates to the new owners, but it would also be good to have an asset on the Exchange that represents these shares, and that can be more easily traded.

Is it possible to create an asset 'Cell 411 Inc Shares' without this being considered a 'public offering'?

Is it possible to trade this asset as well?

« Last Edit: April 05, 2016, 11:19:57 am by Marc De Mesel »
Logged

RocketBunny

  • Jr. Member
  • **
  • Karma: +5/-2
  • Offline Offline
  • Posts: 65
  • Big engines fan
    • View Profile
    • Stocks.exchange - where real business meet with crypto world

I think you only need document from Inc like "our shares = NXT assets XXX" and trust from other market subjects
Logged
NXT: Vadym
https://stocks.exchange
mailto: vk@stocks.exchange

Riker

  • Core Dev
  • Hero Member
  • *****
  • Karma: +440/-42
  • Offline Offline
  • Posts: 1796
    • View Profile

No idea about legal implications, however to reduce your exposure, you can issue the shares as "Exchangeable,Controllable" currency then people can only trade with you and you are the only market maker.
Logged
NXT Core Dev
Account: NXT-HBFW-X8TE-WXPW-DZFAG
Public Key: D8311651 Key fingerprint: 0560 443B 035C EE08 0EC0  D2DD 275E 94A7 D831 1651

Nxter

  • Hero Member
  • *****
  • Karma: +61/-7
  • Offline Offline
  • Posts: 597
    • View Profile

This is a very nice iniciative. Good idea Marc
Logged

Marc De Mesel

  • Hero Member
  • *****
  • Karma: +228/-83
  • Offline Offline
  • Posts: 643
    • View Profile

This is a very nice iniciative. Good idea Marc

Thanks Nxter :)

Marc De Mesel

  • Hero Member
  • *****
  • Karma: +228/-83
  • Offline Offline
  • Posts: 643
    • View Profile

No idea about legal implications, however to reduce your exposure, you can issue the shares as "Exchangeable,Controllable" currency then people can only trade with you and you are the only market maker.

I wasn't aware this is possible, thanks Riker :)

Marc De Mesel

  • Hero Member
  • *****
  • Karma: +228/-83
  • Offline Offline
  • Posts: 643
    • View Profile

I think you only need document from Inc like "our shares = NXT assets XXX" and trust from other market subjects

I don't think I need this document, I can sell my shares to anyone, but the buyer indeed needs to trust that the company will send them their stock certificates after they pay me.

I think what you mean is, 'how can I transfer my shares to others via the asset exchange, and make it a valid transaction without needing to send also paper stock certificates', right?

Nxter

  • Hero Member
  • *****
  • Karma: +61/-7
  • Offline Offline
  • Posts: 597
    • View Profile

It seems he has been inactive for a while now, but you could try to get the lawyer of nxt on board. https://nxtforum.org/nxt-legal/
Logged

farl4bit

  • Hero Member
  • *****
  • Karma: +210/-45
  • Offline Offline
  • Posts: 3466
    • View Profile
    • Crypto Advies

The legality of the AE still is not quite clear. When AE is used in combination with the realworld, there needs to be some kind of trust, trust in the issuer or trust in some kind of document that represents the asset and the proof of ownership.
Logged

devlux

  • Sr. Member
  • ****
  • Karma: +67/-2
  • Offline Offline
  • Posts: 307
    • View Profile
    • Gemspace

So I'll get my shares of Cell 411 Inc soon in the mail that I bought last month.

I'd like to already sell some if the price is right.

The only thing I would need from the buyer is his name and address as the company is registered in Delaware and required to keep a stock ledger of all the names and addresses of it's shareholders.


I could just sell them privately, after which the company will send new stock certificates to the new owners, but it would also be good to have an asset on the Exchange that represents these shares, and that can be more easily traded.

Is it possible to create an asset 'Cell 411 Inc Shares' without this being considered a 'public offering'?

Is it possible to trade this asset as well?

Here's the simple of it Marc and then I'll give you some links for reference.
If the company is listed on the NXTAE then the matter is settled, as long as they filed the requisite paperwork with the SEC and listed the NXTAE as their official transfer mechanism then yes.

Otherwise what you are doing is offering a "token" redeemable for shares.
You're doing it independently of the company and unless you have a pre-existing business relationship with the buyer then you need to be a FINRA registered broker dealer.  Because really what you're selling is trust in yourself, that you'll deliver those shares and that trust is something you need to be licensed in order to offer.

So here's the conundrum.  If you already have a pre-existing relationship.  Family, drinking buddy etc, then you can sell direct to them and use the MS as proof of sale.  Because you aren't functioning as a broker.  But you don't nessecarily need a crypto-token in that case.

If you're trying to sell these shares randomly to the highest bidder, unless the company is already using the NXTAE then only a broker can close the sale for you.

Now the laws might be different wherever you are at.  Also your odds of getting caught and called out are slim.
But you do not want to end up like these guys...
https://en.bitcoin.it/wiki/GLBSE

Ok so here is the plain english for you.
https://www.sec.gov/investor/pubs/holdsec.htm

Note that if the business were on the NXTAE then the AE is their DRS in the context of that document, but we already know they aren't.  However it would be great if someone would work to setup a business to get businesses on the NXTAE :=)

Also obligatory, I am not a securities lawyer, but I do work with several and will give you a referral to one if you'd like.
Logged
Evolution NEXT D.A.C.
NXTAE:3385321989487982138 (EVOLVE)

Marc De Mesel

  • Hero Member
  • *****
  • Karma: +228/-83
  • Offline Offline
  • Posts: 643
    • View Profile

Here's the simple of it Marc and then I'll give you some links for reference.
If the company is listed on the NXTAE then the matter is settled, as long as they filed the requisite paperwork with the SEC and listed the NXTAE as their official transfer mechanism then yes.

Otherwise what you are doing is offering a "token" redeemable for shares.
You're doing it independently of the company and unless you have a pre-existing business relationship with the buyer then you need to be a FINRA registered broker dealer.  Because really what you're selling is trust in yourself, that you'll deliver those shares and that trust is something you need to be licensed in order to offer.

So here's the conundrum.  If you already have a pre-existing relationship.  Family, drinking buddy etc, then you can sell direct to them and use the MS as proof of sale.  Because you aren't functioning as a broker.  But you don't nessecarily need a crypto-token in that case.

If you're trying to sell these shares randomly to the highest bidder, unless the company is already using the NXTAE then only a broker can close the sale for you.

Now the laws might be different wherever you are at.  Also your odds of getting caught and called out are slim.
But you do not want to end up like these guys...
https://en.bitcoin.it/wiki/GLBSE

Ok so here is the plain english for you.
https://www.sec.gov/investor/pubs/holdsec.htm

Note that if the business were on the NXTAE then the AE is their DRS in the context of that document, but we already know they aren't.  However it would be great if someone would work to setup a business to get businesses on the NXTAE :=)

Also obligatory, I am not a securities lawyer, but I do work with several and will give you a referral to one if you'd like.

This is again very valuable info devlux, thank you very much.  :)

devlux

  • Sr. Member
  • ****
  • Karma: +67/-2
  • Offline Offline
  • Posts: 307
    • View Profile
    • Gemspace

You're very welcome Marc.  Glad to help!
Logged
Evolution NEXT D.A.C.
NXTAE:3385321989487982138 (EVOLVE)
 

elective-stereophonic
elective-stereophonic
assembly
assembly