American Internet stock offerings are exempt from US Securities and Exchange Commission (SEC) registration. This makes their resale in the United States nearly impossible. Some Net-funded companies trade their shares at their websites. However, the trades must conform to Federal and State exemption regulations. This policy severely limits the buying of the stock. There’s little potential for American Net-shares to appreciate.
The SEC opposes efforts to create a website that would freely trade exempt securities. An American Internet Stock Exchange can’t evolve by trading exempt securities. Given American securities laws, it’s unlikely an Internet Stock Exchange website can be located in the United States.
An opportunity however exists. to create an Asian Internet Stock Exchange. It could be started using a different legal format. It would fund new business development throughout Asia. The founders of a successful Asian Internet Stock Exchange would become rich.
An Internet Stock Exchange must keep its listing and filing costs low. The local government shouldn’t regulate an Internet Stock Exchange. You can avoid government regulation by excluding the website country’s citizens from trading on your stock exchange.
To attract investors, an Asian Stock Exchange must be credible. Every new Stock Exchange lacks credibility. Government regulation offers instant credibility. Your goal should be to have your listed companies regulated, until your Stock Exchange becomes accepted on its merits. The American SEC could supply this service to an Asian Internet Stock Exchange. A credible Stock Exchange, unregulated by the local government, exists. The British government doesn’t regulate the International (London) Stock Exchange. It’s very credible. An Asian Internet Stock Exchange should evolve from the British model.
To keep investors, they must make money on your stock exchange. This means that a strong market for your listed stocks must exist beyond the Asian Stock Exchange. The best market for your shares would be the United States.
One method of offering freely trading stock is to create spinoffs. Spinoff stock freely trades in the United States. Any foreign group can own a spinoff-sponsor. Non- American private companies can become spinoffs under the American Law. A spinoff-sponsor operates like a miniature stock exchange.
You can list the spinoff-sponsored company stock on your Asia Internet Stock Exchange. The listed companies can be exclusively Asian companies. Your listed companies legally trade in the United States. Your Exchange is credible because the SEC regulates your listed companies. As the spinoffs’share prices and assets increase, the spinoffs can list their shares on Nasdaq, AMEX, or any other American Stock Exchanges. Each spinoff should evolve into a strong multinational corporation. The spinoff can list on Europe and National Asia Stock Exchanges. As the market for the Asian Internet Stock Exchange shares grows, your electronic investors profit. An Asian Internet Stock Exchange would give Asian entrepreneurs access to global risk capital markets. Where would your Asian Internet Stock Exchange find brokerage firms to do your underwritings? European brokers do the risk capital underwritings for American spinoffs. Using an American spinoff format, your listed companies qualify for billions of dollars in European risk capital.
Altos Education [http:// www.altosnet.com] will offer an Online Equity Finance Seminar this June. This seminar will discuss the use of spinoffs to create Internet Stock Exchanges. Whether you want to find risk capital for your company or want to develop a source of Asian risk capital, the seminar should help you reach your goal. Asia offers the best potential market for a regional Internet Stock Exchange. Operated cautiously, an Asian Internet Stock Exchange could fuel Asian business expansion into the 22nd Century.