Small Corporate Offering Registration - SCOR

AAA

DEFINITION of 'Small Corporate Offering Registration - SCOR'

A form of corporate securities registration designed to reduce the paperwork requirements for small companies seeking to raise capital through the public sale of shares. The small corporate offering registration allows up to $1 million to be raised while avoiding the costs of an IPO. It is often referred to as an over-the-counter sale of securities, as the securities are not traded on an exchange. Instead, they are traded directly between brokers and dealers either online or over the phone.


In order to qualify for this type of registration, a company cannot be considered an investment company or involved in energy, and it must have a valid business plan.

INVESTOPEDIA EXPLAINS 'Small Corporate Offering Registration - SCOR'

Companies that use small corporate offering registration are still required to comply by all Securities and Exchange Commission (SEC) regulations regarding the offering and sale of securities. The SCOR Form allows companies to be exempted from some state securities laws (known as blue sky laws). Additionally, SCOR is only used by the companies themselves and is not used by other investors to sell their shares.

RELATED TERMS
  1. SEC Form U-1

    An application or declaration made by a company to the Securities ...
  2. Initial Public Offering - IPO

    The first sale of stock by a private company to the public. IPOs ...
  3. Blue Sky Laws

    State regulations designed to protect investors against securities ...
  4. Securities And Exchange Commission ...

    A government commission created by Congress to regulate the securities ...
  5. Registration

    1. The process by which a company files required documents with ...
  6. North American Securities Administrators ...

    A voluntary organization, established in 1919, of securities ...
Related Articles
  1. Investigating The Securities Police
    Professionals

    Investigating The Securities Police

  2. How An IPO Is Valued
    Investing

    How An IPO Is Valued

  3. Policing The Securities Market: An Overview ...
    Investing Basics

    Policing The Securities Market: An Overview ...

  4. IPO Basics Tutorial
    Retirement

    IPO Basics Tutorial

comments powered by Disqus
Hot Definitions
  1. Last In, First Out - LIFO

    An asset-management and valuation method that assumes that assets produced or acquired last are the ones that are used, sold ...
  2. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  3. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  4. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  5. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  6. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
Trading Center