Selling a percent of a company's common stock, rather than actual share numbers

Discussion in 'Growing and Managing a Business' started by dave1958, Oct 23, 2013.

  1. dave1958

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    Oct 23, 2013
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    I am involved in finding investors for a corporation that is 100% owned by its founder. He has no common stock formally issued or even authorized, and yet intends to turn a percentage of his company over to investors in the form of common stock (e.g. 10% for $1,000,000, 5% for $500,000). He also agrees to any language that ensures that the stock will be immune from dilution. Can an appropriate agreement be written up that makes this work? Also, is it legal for me to be involved as a finder as I am not a licensed broker. I am however, involved in a marketing capacity myself in the company (under no current compensation), and would be receiving a small piece of the company myself for attracting the investor.

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