Miro Zecevic

  What is a derivative? A financial instrument based on another asset is known as a derivative. Stock options and commodities futures are two of the most common examples of derivatives, and you've definitely heard of them but aren't sure how they operate. Derivatives allow consumers the option — but not the duty — to acquire or sell an underlying asset at a later date. The underlying asset and the period until the contract expires determine the derivative's value. How Financial Derivatives Work Financial derivatives are financial products whose value is determined by one or more underlying financial assets, such as stocks, bonds, commodities, currencies, or interest rates. Investors engage in contracts with stated terms, such as the period of the contract and the consequent values and definitions of the underlying assets, to purchase and sell derivatives. Futures, options, swaps, and forwards are examples of financial derivatives. Futures and options are often traded on the...

  Securities and Exchange Commission (SEC) is independent U.S federal agency that regulates the stock market. It was created in 1934 by Congress to help restore investor confidence after the 1929 stock market crash. The Securities Exchange Act of 1934 was created by Securities and Exchange Commission. It govern securities transaction on the secondary market relying on Securities Act of 1933 which increased transparency in financial  statements and  established  laws against fraudulent activities. In essence SEC provides transparency by ensuring accurate and consistent information about companies that allows investors to make informed and sound decisions. Without transparency stock market would be vulnerable to market speculation and creation of asset bubbles.  Securities and Exchange Commission has five  commissioners and five different divisions: Division of corporate finance - review corporate filing requirements ensuring that investors have complete...

Rising Capital with Your Public Company The Problem Solved by Continuous Offerings Period to the introduction of Reg A+, companies with existing stock trading are willing to sell with the old Reg A. To achieve this, the price of the price of the stock had to be relatively reasonably compared to the market price. But, the market price by small companies can be unpredictable or volatile. To enable the company changes the offering price, the company must file an amendment of its Reg A+ filing, and it takes weeks to get the approval by the SEC. During this period of waiting, changes in the market price automatically mean that pricing would be out of date. After the offering is approved by the SEC, companies have the right to offer stock at various prices over a period through the new Reg A+. At the time of sale, pricing information is filed after sale as a supplement which does not require the SEC review. Terminology First, there is a need to understand the differenc...

Regulation A VS IPO Even tough Reg A is an exemption from registration requirements like Reg D and Reg CF, Regulation A has more in common with IPO and it is often called a “mini IPO”. They are both open to all investors and securities offered can be traded and resold. advantages of Reg A is that it is more cost effective and more marketing friendly. Registration statement, known as 1A is similar to but simpler than S1 registration statement that is traditionally used for IPO. It requires just two years of audited financials and general level of disclosure is more streamlined. Preparation of 1A registration statement, attorneys and accountants costs and SEC review time are reduced. Also marketing of Reg A permits use of variety of media. SEC allows general solicitation and the goal is to find potential investors regardless if they have brokerage accounts with syndicate firms or not. To sum it up Reg A is saving time and money. MinaMarGroup.com InvestorRelations.mmg@gm...

Role of Investor Relations Investor Relations combines finance, communication and marketing to effectively control the flow of information between a public company, its investors and its stakeholders. The main goals of an investor relations professionals are: To enable the company to achieve the optimum share price that reflects the  fundamental value of the company Representing the company to investors and representing investors to the company Providing financial information to investors (retail and institutional) in a timely and accurate way Providing nonfinancial data to support company valuations Observing the rules of securities commissions and stock exchanges Not  aggressive sales promotion or “closing” Presenting investor feedback to company management and board Building receptive capital markets for future financing at favorable terms Some of IR’s other functions include: Coordination of meet...

Regulation A & Rule 701 Regulation A Section 508 of the Act directs the SEC to amend Regulation A+ to remove the provision making companies subject to the SEC Securities Exchange Act reporting requirements ineligible to use Regulation A/A+ and to add a provision such that a company’s Exchange Act reporting obligations will satisfy Regulation A+ reporting requirements. I have often blogged about this peculiar eligibility standard. Although Regulation A is unavailable to Exchange Act reporting companies, a company that voluntarily files reports under the Exchange Act is not “subject to the Exchange Act reporting requirements” and therefore is eligible to use Regulation A. Moreover, a company that was once subject to the Exchange Act reporting obligations but suspended such reporting obligations by filing a Form 15 is eligible to utilize Regulation A. A wholly owned subsidiary of an Exchange Act reporting company parent is eligible to complet...