Forex

When a company goes public to raise money, it must file a prospectus with the securities commission. Private companies do not have to file a prospectus to sell their securities as long as they comply with specific rules that limit how and to whom they can sell. These rules are in place to protect investors. There is no guarantee that an investment in any company will be safe, even when the company follows all the rules.

Investing in start-up ventures is always riskier; learn more about investing in start-up companies.

The following is a description of the ways public companies can sell their securities. If they do not comply with the rules for raising money, the sale is illegal.