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. Registration

    1. The process by which a company files required documents with ...
  3. Securities And Exchange Commission ...

    A government commission created by Congress to regulate the securities ...
  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 are the key differences between marketing and advertising?

    The key differences between marketing and advertising are based on how each term defines a separate function in the process ... Read Full Answer >>
  2. How do I purchase shares of a closed-end investment?

    Unlike open-end mutual funds that sell shares in the fund directly to investors, closed-end funds are traded on an exchange ... Read Full Answer >>
  3. What advantages do corporations have over privately held companies?

    The chief advantage that most publicly traded corporations enjoy โ€“ and the primary reason why private companies decide to ... Read Full Answer >>
  4. Is there a way to invest in the income effect?

    Investing in the income effect consists of investing in areas that are affected when an individual's income increases. The ... Read Full Answer >>
  5. What does the underwriter do in a new stock offering?

    The underwriter in a new stock offering serves as the intermediary between the company seeking to issue shares in an initial ... Read Full Answer >>
  6. What is the best form of equity financing for a start-up company?

    Raising capital during the startup phase of a business can present challenges to an entrepreneur. Debt financing is difficult ... 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. Economics

    What is a Partnership?

    A partnership is an organization where two or more owners operate a business.
  7. Entrepreneurship

    How To Expand Your Business Internationally

    A guide to the risks and rewards of expanding a business abroad.
  8. Retirement

    5 Secrets You Didn't Know About 401(k)s

    If your employer offers a 401(k), that should be your first stop for retirement savings โ€“ especially if your contributions are matched.
  9. Retirement

    5 Secrets You Didn't Know About Traditional IRAs

    A traditional IRA gives you a current-year tax benefit and future years of tax savings โ€“ minus the income restrictions that limit who can have a Roth IRA.
  10. Retirement

    How (And Why) To Open an IRA Now

    Take these simple steps to set up an Individual Retirement Account that will save you tax money and set you up for the future.

You May Also Like

Hot Definitions
  1. Wash Trading

    The process of buying shares of a company through one broker while selling shares through a different broker. Wash trading ...
  2. Fixed-Income Arbitrage

    An investment strategy that attempts to profit from arbitrage opportunities in interest rate securities. When using a fixed-income ...
  3. Venture-Capital-Backed IPO

    The selling to the public of shares in a company that has previously been funded primarily by private investors. The alternative ...
  4. Merger Arbitrage

    A hedge fund strategy in which the stocks of two merging companies are simultaneously bought and sold to create a riskless ...
  5. Market Failure

    An economic term that encompasses a situation where, in any given market, the quantity of a product demanded by consumers ...
  6. Unsystematic Risk

    Company or industry specific risk that is inherent in each investment. The amount of unsystematic risk can be reduced through ...
Trading Center