Finding SEC law firms for companies looking to go public can be a daunting task.
Securities lawyers advise clients regarding various securities law areas, including compliance with these complex laws and structure transactions to avoid liability under state and federal securities laws. They also respond to regulatory inquiries from agencies such as the Securities and Exchange Commission (“SEC”) and the Financial Industry Regulatory Authority (“FINRA”).
Public companies often enlist security lawyers’ assistance to prepare and review disclosures made by such companies in their public filings with the SEC.
Many companies go public to raise money.
It is much easier for a public company to raise capital than it is for a private company. After going public, the company may be able to use its common stock as a form of currency and as collateral for loans.
Going public creates value for an issuer’s securities. Going public also makes liquidity for existing and future investors and provides an exit strategy for shareholders and investors.
It is easier to build recognition of a public company than a private one. Publicly traded companies are often promoted and gain publicity from their status as a public company. Further, news & media have a greater incentive to report matters concerning public companies than private companies because of the number of shareholders and investors seeking information about the company.
Public companies may attract more qualified employees and key personnel because it allows the company’s management and employees to share their growth and success through stock options and other equity-based compensation.
Finding SEC law firms
Going public is a complicated & intricate procedure. It is essential to have an experienced attorney to help your company navigate through the process and deal with the Securities & Exchange Commission the (“”SEC””), Financial Regulatory Industry Authority (“”FINRA””) & Depository Trust Company (“”DTC””). Hiring the right SEC attorney is a big step for any company.
Securities laws govern one of the most highly regulated and complex areas of commerce in the United States. They are a unique set of laws, rules, and regulations on both a federal and state level. Due to such ‘laws’ complexity, individuals and entities contemplating business subject to such laws are well-advised to hire a lawyer whose practice focused on securities and corporate law.
The two central bodies of federal law that most entities will be subject to are the Securities Act of 1933 (the “1933 Act”) and the Securities Exchange Act of 1934 (the “1934 Act”). A brief overview of these securities laws set forth below.
Entities that are considering raising capital for their businesses by offering securities on either a private or public basis will be subject to the registration provisions of the 1933 Act on a federal level and the various states’ securities laws known as “Blue Sky Laws.” Entities will register securities that they propose to sell to the public, or they will structure their offering to comply with various transaction exemptions from registration available under state and federal law.
All sales of securities are subject to state and federal anti-fraud laws. Prospective issuers of securities should inquire about types of securities offerings. Their prospective counsel has participated and obtains a definitive agreement regarding the cost of services rendered in the offering.
The Securities and Exchange Act of 1934 regulates, among other things, the secondary sales of securities by individuals and entities and requires the filing of periodic reports with the SEC by companies whose securities are publicly traded.
The 1934 Act also regulates securities sales by corporate insiders of public companies and individual shareholders who hold at least 10% of such public companies’ issued and outstanding securities. Public companies often enlist the assistance of securities lawyers to prepare and review disclosures made by such companies in their public filings with the SEC.
In making the determination when finding SEC law firms of whom to engage as securities counsel, there are several criteria to consider. For companies seeking to raise capital, management should be considering experienced attorneys who are skilled in drafting and filing registration statements with the SEC or who have prepared private placement memoranda and assisted clients with complying with the various states’ Blue Sky laws.
These attorneys are typically also skilled in and have experience with corporate governance matters involving the interpretation and application of various states’ corporate laws. The expertise of counsel in assisting clients with their reporting requirements after becoming a fully reporting public company is an additional consideration.
Securities counsel who also performs EDGAR filings with the SEC for their clients has an additional skill set that allows public company clients to avoid hiring a separate EDGAR filing agency to make their filings with the SEC.
For persons or entities involved in securities litigation, they will be seeking counsel with experience in state and federal court and the arbitration forums of the securities industry.
Suppose you are looking for full-service business representation from entity formation, corporate finance transactions, IPO’s, and other forms of going public transactions. In that case, we have a list of SEC Law Firms to try.