How to Issue Penny Stocks
Penny stocks are publicly traded equities that have a share price of below $5 and are not listed on the major exchanges. These are usually either new companies trying to raise capital for expansion or older companies that have either never really experienced significant growth or have experienced a massive decline in value. Issuing a penny stock will require assistance from a lawyer and an accountant. Becoming a public company imposes many additional legal requirements on how much information about your business that you share with the public.
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Instructions
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Contact a lawyer and accountant to prepare your initial public offering. You will need to make certain things like many parts of your balance sheet open to the public when you issue public stock. A lawyer and an accountant will be necessary to guide you through the process. The lawyer must agree to underwrite the IPO in order for the filing to be successful.
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Register the stock with the Securities and Exchange Commission. During this process, you must fill out many forms regarding the assets and liabilities of the company, its cash flow and provide some personal financial information about the owners of the business.
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Complete all relevant SEC forms as advised by your lawyer. The forms that you will need will be different depending on the nature and size of your company. The SEC will then process your forms for approval. If you have filled out everything accurately and your company is currently solvent, you'll likely be approved for an initial public offering. The SEC will reply to your application stating any errors that your company may have made filing the application.
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Choose a type of initial public offering for your company. In most cases, you will need to commit your company to purchase the shares and then sell them at the market price.
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Issue the initial public offering. For best results, issue press releases at the same time to build up some excitement about the offering. In many cases, if your company is at penny stock status, it will be difficult to get larger investors interested in your company. Look for penny stock newsletter providers and send them your press releases to get more targeted coverage.
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