Capricorn, Inc., is planning to “go public” by offering its common stock, which previously had been owned by only three shareholders. The company intends to limit the number of purchasers to twenty-five persons residing in the State of its incorporation. All of Capricorn’s business and all of its assets are located in its State of incorporation. Based upon these facts, what exemptions from registration, if any, are available to Capricorn, and what conditions would each of these available exemptions impose upon the terms of the offer?
Capricorn, Inc., is planning to “go public” by offering its common stock, which previously had been owned by only three shareholders. The company intends to limit the number of purchasers to twenty-five persons residing in the State of its incorporation. All of Capricorn’s business and all of its assets are located in its State of incorporation. Based upon these facts, what exemptions from registration, if any, are available to Capricorn, and what conditions would each of these available exemptions impose upon the terms of the offer?
Chapter11: The Corporate Income Tax
Section: Chapter Questions
Problem 12MCQ
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Capricorn, Inc., is planning to “go public” by offering its common stock, which previously had been owned by only three shareholders. The company intends to limit the number of purchasers to twenty-five persons residing in the State of its incorporation. All of Capricorn’s business and all of its assets are located in its State of incorporation. Based upon these facts, what exemptions from registration, if any, are available to Capricorn, and what conditions would each of these available exemptions impose upon the terms of the offer?
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