Re: How to value a web site
ANDREW GROSSET <AGROSSET_at_TELUSPLANET.NET> WROTE:
>What about the merits or otherwise of issueing shares of the
>company owning the web page (I am assuming the web page is
>owned by a co. set up especially for this). I havn't
>discussed this with an accountant but the idea of issueing
>say a million $1 shares at start-up has interesting
>possibilities, particularly if the site ends up being
>popular. For example if the site had 300,000 visitors (per
>year) and 10% bought an average of 33.33 shares at $1 each,
>$1,000,000 would be raised.... Anyone have any thoughts on
>this ?
The idea of having 1 million shares of stock purchased by
300,000 visitors to a web site is legally dangerous. The
stock is a "security" which must be registered with the
Securities and Exchange Commission and in the States
offered. Further, each prospective purchaser must recieve
appropriate disclures- a prospectus - and extensive
record-keeping would be required. If a company really wants
to go public, an appropriate brokerage firm should be used
to guide it through and market the Public Offering.
Ronald J. Cappuccio, J.D., LL.M.(Tax)
Counsellor at Law
http://www.RonCappEsq.com/
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Received on Thu Jan 28 1999 - 14:35:49 CST
