Definition of Security
Consequences of Non Compliance
In addition to its role to protect Kansas investors, the Office of the Kansas Securities Commissioner (KSC) works to foster capital formation by promoting the integrity of capital markets and by consulting with entrepreneurs and their representatives to guide them through the process of legally raising capital in Kansas. Every sale of a security in Kansas is registered, exempt or illegal. This simple statement is a powerful analytical tool for any person considering raising capital in Kansas. It poses several important questions.
Is the interest a security?
Is there an exemption available?
If not, how do I register securities?
What are the consequences of non-compliance?
General Issues to Consider
Raising capital is a complicated undertaking with many consequences to your business
Legal and accounting fees may be prohibitive if only a small amount is being raised
The expenses may be incurred and you may still fail to raise the money you need
You will also be giving up part of your business and will have investors that expect to be kept informed about how "their" business is doing and making useful "suggestions"
These are just a few of the items you should consider before conducting a securities offering. For more considerations we suggest you read:
Raising Capital in Kansas
Consultation with staff
North American Securities Administrators Association
Securities and Exchange Commission
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