Legal Question in Investment Law in Colorado

Valuation of Privately Issued Securities

Does the SEC have any guidelines or regulations concerning calculation of the market value of privately issued securities?


Asked on 7/26/00, 3:13 pm

1 Answer from Attorneys

Louise Aron Attorney at Law

Re: Valuation of Privately Issued Securities

Louise Aron

Attorney at Law

Lakewood Office:

1536 South Ingalls

Lakewood, Colorado 80232 USA

(303) 922 7687

fax (303) 922-1370

Cherry Creek Office:

300 South Jackson #100

Denver, Colorado 80209 USA

(303) 780-7339

Satellite offices:

Boulder - 4450 Arapahoe Avenue, #100

DTC - 4610 South Ulster, #150

A TOLL FREE NUMBER is available to clients outside the Denver metro area.

web site http://www.bewellnet.com/louise/

[email protected]

September 12, 2000

Dear LawGuru user:

Privately held securities (and privately held or close corporations) are valued by accountants, lawyers and business appraisers, not by the SEC.

Often the method of valuation, at least for buyout purposes, is specified in the "Buy-Sell" Agreement or shareholder agreement executed at the time of incorporation. The buyout provision in such agreements usually involve accountants or appraisers.

Please contact me if you have further questions.

Sincerely,

Louise Aron

Attorney at Law

Main Lakewood Office:

1536 South Ingalls

Lakewood, Colorado 80232 USA

(303) 922 7687

fax (303) 922-1370

Cherry Creek Office:

300 South Jackson #100

Denver, Colorado 80209 USA

(303) 780-7339

Satellite offices:

Boulder - 4450 Arapahoe Avenue, #100

DTC - 4610 South Ulster, #150

A TOLL FREE NUMBER is available to clients outside the Denver metro area.

web site http://www.bewellnet.com/louise/

[email protected]

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Answered on 9/12/00, 7:21 pm


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