CHEAP STOCK OPINIONS
Cheap Stock is a securities term referring to corporate shares that are priced below the price of an anticipated public equity offering. Companies that issue such securities without an independent cheap stock opinion may find themselves in a predicament with the SEC. The SEC, as well as a number of states, imposes restrictions on stock issued to company promoters when the company files for an IPO. Generally, cheap stock is considered that which is issued to company promoters and other insiders within three years of an IPO at a price below that of the IPO price.
The Houlihan firm has considerable experience working with companies to satisfactorily resolve Cheap Stock issues. By obtaining a Cheap Stock opinion prior to an S-1 filing, a company decreases its chance of receiving further information requests or having the amount of employee compensation in the historical periods challenged by the SEC. Where questions or challenges do arise, the Houlihan firm works with the company and the regulators to quickly resolve any issues, allowing the IPO to proceed.