If I form a farm corporation, can I sell preferred stocks and bonds to raise capital?
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If I form a farm corporation, can I sell preferred stocks and bonds to raise capital?
Or am I only allowed to have class A (voting) stock?
Asked on February 26, 2013 under Business Law, Minnesota
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
Yes, if you form a corporation, you may sell preferred stock and/or bonds to raise money. You will need to register and comply with all federal (e.g. the '33 and '34 Acts) and state law (ak "Blue Sky" laws) regarding the sale of securities.
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