Can someone help me with a question about stock?

  • Thread starter Thread starter Dashelle D
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Dashelle D

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Gigi Liken and Ron Bobo are organizing Gold Unlimited Inc. to undertake a high-risk gold-mining venture in Canada. Gigi and Ron tentatively plan to request authorization for 75,000,000 shares of common stock to be sold to the general public. Gigi and Ron have decided to establish par of $1 per share in order to appeal to a wide variety of potential investors. Gigi and Ron feel that investors would be more willing to invest in the company if they received a large quantity of shares for what might appear to be a "bargain" price.



Is Gigi and Ron behaving in a professional manner?
 
Well, there are certainly a ton of "penny" stocks that follow this principle. Professional, yes. Reasonable, I'd say not...
 
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