Fact Pattern 31-1
Fresh Cream, Inc., wants to make an initial public offering of securities. Fresh believes that it qualifies for an exemption under Regulation A from the full registration requirement of the federal Securities Act of 1933.
-Refer to Fact Pattern 31-1. Fresh decides to sell its new securities via the Internet. This offering

Question

Fact Pattern 31-1 
Fresh Cream, Inc., wants to make an initial public offering of securities. Fresh believes that it qualifies for an exemption under Regulation A from the full registration requirement of the federal Securities Act of 1933.
-Refer to Fact Pattern 31-1. Fresh decides to sell its new securities via the Internet. This offering

Quizplus · Accepted Answer

Selling securities via the Internet can avoid the need to pay commissions to brokers or underwriters, which may make the offering less expensive for the issuer and more attractive to potential investors. This does not necessarily indicate an investment scam, Ponzi scheme, or insider trading.