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    Even private companies have rules to follow (Score: 1)
    by chipotle_pickle on Thursday, December 11, 2003 @ 10:09:20 UTC
    (User Info | Send a Message) http://freehydrogen.blogspot.com
    There is type of corporation you can set up for just a few shareholders (? less than 35?) that doesn't require registering stock. But once you have hundreds of shareholders, you have to register the shares. Even if the company isn't public.

    This is a variation on a pump and dump. The false information was not released to raise the price of the stock, the stock price was always 10 cents a share. The false information was relayed privately to the investors in order to sell the stock at the fixed price. It's still a pump and dump. It's just that a lot of the pumping and all of the dumping was done in the shadows.


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