There is a common misconception that securities laws only apply to incorporated companies listed on stock exchanges. Securities laws apply to any issuer, regardless of whether they are incorporated or listed on a stock exchange.
Securities laws apply to all issuers from the moment of their incorporation or formation. Forming an organization usually involves issuing securities to the owner(s) or founder(s). As you will see later, securities regulations specify how these securities can be issued.
The misconception that securities laws only apply to public companies results in many Start-Up and early stage issuers unintentionally breaking the law. If you are a director, senior officer or owner of any issuer at its early stage of development, the information here will provide you with a general understanding of securities regulation. It will also provide you with some simple guidance on how your organization can comply with securities laws in El Salvador.
For further information, please go to: Private Early Stage Businesses.