From: “Joseph M. Reagle Jr.” <reagle@rpcp.mit.edu>
To: cypherpunks@toad.com
Message Hash: 6ceeffb475217e12b93d7a1b4ea15d374fdea9a6f01f37056d953bae0c300259
Message ID: <9607011502.AA20760@rpcp.mit.edu>
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UTC Datetime: 1996-07-01 19:31:43 UTC
Raw Date: Tue, 2 Jul 1996 03:31:43 +0800
From: "Joseph M. Reagle Jr." <reagle@rpcp.mit.edu>
Date: Tue, 2 Jul 1996 03:31:43 +0800
To: cypherpunks@toad.com
Subject: SEC lets California retailer trade stock on Internet
Message-ID: <9607011502.AA20760@rpcp.mit.edu>
MIME-Version: 1.0
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WASHINGTON, June 27 (Reuter) - A California company that
sells energy-saving solar panels has received Securities and
Exchange Commission approval to trade its stock over the
Internet, extending the boundaries of off-exchange trading
into cyberspace.
The approval, the first the SEC has issued on stock
trading over the Internet, was given earlier this week to
Ukiah, Calif.-based Real Goods Trading Corp., through a ``no
action'' letter.
In such a letter, the SEC allows a petitioning company to
perform what it requested to do, without fear of any
enforcement action. In approving Real Goods' request, however,
the agency imposed conditions in the interest of investor
protection.
John Schaeffer, president, chief executive and founder of
the company said in an interview he hoped to get the new
system operational ``within a couple of weeks.''
Schaeffer said that since 1991, his company has sold $4.6
million of its company's stock to the public through direct,
small offerings and without having to pay fees to investment
bankers.
``The 'off the grid' trading of our stock is a logical
extension of our service to our customers, who will now be
able to buy and sell our security without going through a
broker,'' Schaeffer said.
``This is also consistent with our mission of creating
independent energy alternatives for our customers,'' he added.
Real Goods is currently traded thinly on the Pacific Stock
Exchange, at a price range of between $5 to $7 in 1995. The
stock closed at $7.25 on June 26.
In its application, the company said its system would
function as a passive Internet bulletin board that will
provide the names, addresses, including E-mail, and phone
numbers of interested buyers and sellers and number of shares
offered for sale or desired to be purchased.
Those participating may transmit the information through
the company's World Wide Web site or by telephone, fax, mail
or E-mail. Real Goods will then enter the data into the
system.
Real Goods posted a loss of $175,000 last year on sales of
$15.3 million, Schaeffer said.
``We expect to be profitable this year,'' he said, adding he
estimates sales to climb to about $20 million.
Earlier this year, the SEC permitted Spring Street Brewery
Co., of New York, to make an initial public offering over the
Internet. The agency asked the company to suspend trading,
pending review of legal implications of such a trading system.
Spring Street subsequently said it planned to establish an
online stock exchange through a unit.
_______________________
Regards, Democracy is where you can say what you think
even if you don't think. -
Joseph Reagle http://rpcp.mit.edu/~reagle/home.html
reagle@mit.edu E0 D5 B2 05 B6 12 DA 65 BE 4D E3 C1 6A 66 25 4E
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1996-07-01 (Tue, 2 Jul 1996 03:31:43 +0800) - SEC lets California retailer trade stock on Internet - “Joseph M. Reagle Jr.” <reagle@rpcp.mit.edu>