Small Company Offering Registration

Several states offer programs to ease the process of public equity financing for firms within their borders. A firm in a state that has enacted a SCOR (Small Company Offering Registration) law can raise $1 million by publicly selling shares worth at least $5. This law creates a fairly standardized, fill-in-the blank registration document to reduce a firm’s time and cost in preparing an offering.Afirm can sell shares from a SCOR offering in other states with minimal notice to the SEC. According to estimates, a SCOR offering can reduce issuing costs by up to one-half for small firms.