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. Securities And Exchange Commission ...

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

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

    A voluntary organization, established in 1919, of securities ...
  5. Blue Sky Laws

    State regulations designed to protect investors against securities ...
  6. Initial Public Offering - IPO

    The first sale of stock by a private company to the public. IPOs ...
RELATED FAQS
  1. What types of capital are not considered share capital?

    The money a business uses to fund operations or growth is called capital, and there are a number of capital sources available. ... Read Full Answer >>
  2. What kind of assets can be traded on a secondary market?

    Virtually all types of financial assets and investing instruments are traded on secondary markets, including stocks, bonds, ... Read Full Answer >>
  3. Why would a company decide to utilize H-shares over A-shares in its IPO?

    A company would decide to utilize H shares over A shares in its initial public offering (IPO) if that company believes it ... Read Full Answer >>
  4. How do I place a buy limit order if I want to buy a stock during an initial public ...

    During an initial public offering, or IPO, a trader may place a buy limit order by choosing "Buy" and "Limit" in the order ... Read Full Answer >>
  5. What are the benefits of financial sampling?

    Financial sampling allows auditors to approximate the rate of error within financial statements. For accounting purposes, ... Read Full Answer >>
  6. What are the responsibilities of the principal in a company?

    Principals have different roles depending on the nature of an individual business, but the universal responsibility of a ... Read Full Answer >>
Related Articles
  1. Professionals

    Investigating The Securities Police

    Learn about the history of FINRA and how this organization protects investors.
  2. Investing

    How An IPO Is Valued

    The initial valuation of an IPO can determine the success or failure of a specific stock - but how is that price determined?
  3. Investing Basics

    Policing The Securities Market: An Overview Of The SEC

    Find out how this regulatory body protects the rights of investors.
  4. Retirement

    IPO Basics Tutorial

    What's an IPO, and how did everybody get so rich off them during the dotcom boom? We give you the scoop.
  5. Personal Finance

    Who's Looking Out For Investors?

    If your account has been mishandled, FINRA and the SEC are among several organizations that can help.
  6. Stock Analysis

    GrubHub (GRUB): Will it Deliver?

    Analysts are all over the map on GrubHub, but its latest quarterly numbers look pretty solid.
  7. Entrepreneurship

    How a Higher Minimum Wage Would Impact the Economy

    Doubling pay for hourly workers could have several knock-on effects to the economy. Here's a brief look at a big issue.
  8. Trading Strategies

    IPO Flippers And The Companies Who Hate Them

    Learn how flipping activity affects an initial public offering.
  9. Stock Analysis

    Will Jet.com Revolutionize Shopping?

    Jet.com has arrived and will look to steal market share from Amazon over the next several years. Will it be successful?
  10. Professionals

    How to Respond to 'I Already Have an Advisor'

    Every advisor has met someone who already works with an advisor. Here are some tips for keeping the door open.

You May Also Like

Hot Definitions
  1. Xetra

    An all-electronic trading system based in Frankfurt, Germany. Launched in 1997 and operated by the Deutsche Börse, the Xetra ...
  2. Nuncupative Will

    A verbal will that must have two witnesses and can only deal with the distribution of personal property. A nuncupative will ...
  3. OsMA

    An abbreviation for Oscillator - Moving Average. OsMA is used in technical analysis to represent the variance between an ...
  4. Investopedia

    One of the best-known sources of financial information on the internet. Investopedia is a resource for investors, consumers ...
  5. Unfair Claims Practice

    The improper avoidance of a claim by an insurer or an attempt to reduce the size of the claim. By engaging in unfair claims ...
  6. Killer Bees

    An individual or firm that helps a company fend off a takeover attempt. A killer bee uses defensive strategies to keep an ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!