As a result of the stock market crash of 1929

August 26th, 2019

As a result of the stock market crash of 1929, new legislation was passed with the goal of providing greater regulation of the offering and trade of securities, such as stocks and bonds. As part of the legislation, the Securities and Exchange Commission (SEC) was established. The goal of this agency is to provide consumers with increased information for decision making, regulate trading in securities, and guard against fraud. Using the information presented in the scenario below respond to the following in a 1- to 2-page paper: Mark is a San Francisco businessman who owns an older motel on the shore of Lake Tahoe in Nevada. The motel next door to his, also on older motel, recently came onto the market for sale. Both of these motels have a relatively large amount of land. The restaurant and lounge areas of each contain a few slot machines, and Mark’s motel has a poker table, but there is currently no other gambling at either location. Mark is considering buying the motel next door, and using the combined premises to open a luxury resort and casino. He has not yet decided whether he will remodel the current buildings, or demolish them and start from scratch. Mark plans to invest a couple of million dollars of his own, but will need to raise around $50,000,000 to get this venture going. Discuss Mark’s options in raising this money. What options would subject Mark to the Securities Act of 1933? Could Mark qualify for any exemptions under the securities laws? If so, which exemptions might he qualify for? If Mark is subject to the Securities Act of 1933, with what general requirements must he comply? Your written assignments must follow APA guidelines. Be sure to support your work with specific citations from this week’s Learning Resources and additional scholarly sources as appropriate.

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a) Mark’s options for raising money

As an individual investor, Mark has various options for raising money to get his venture going. As with many small businesses, some money is raised from gifts given by family and friends. Other options include lines of credit and loans from financial institutions. However, some these sources of funds become exhausted before the business becoming self-sustaining. According to Securities and Exchange Commission, one can also raise money through crowdfunding (U.S securities and exchange commission, 2014).

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