Archive of UserLand's first discussion group, started October 5, 1998.

Re: Email to Jean-Louis

Author:Tucker Goodrich
Posted:7/20/1999; 7:20:55 PM
Topic:Email to Jean-Louis
Msg #:8612 (In response to 8608)
Prev/Next:8611 / 8613

The article you're pointing to is, in effect, a pyramid scheme, where you get additional whatevers (stock, dollars) for signing up new people. These are illegal no matter what the venue, and are not specifically banned because they're offing stock.

Moreover, any offering of more than a certain amount, to more than a certain number of people (depending on the state, and whether the stock is being offered across state lines) must be registered with the appropriate authorities. A chain-mail stock offering would violate these guidelines in any number of ways.

Offering stock for services rendered, so long as the appropriate legalisms are heeded, is a regular and common occurance. Many startup firms offer free stock to lawyers, etc. for services rendered. There's no reason why offering stock for services should be illegal: if this were the case, how do you explain executive stock options?

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