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Questions Answered by Reno F.R. Fernandez III

1 Answer | Asked in Securities Law for California on

Q: I have a small startup that some friends/family want to invest in.

Do securities laws apply to the sale of stock to friends/family?

Reno F.R. Fernandez III answered on Dec 20, 2017

Good question. The short answer is "yes." Some of the federal and state securities laws apply to all equity investments regardless of the status of the investor.

However, some investments are exempt from registration, which simplifies things and saves costs. For example, private...
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