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Define what steps must be followed to comply with the law

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Two former roommates from college contact you about an opportunity to make big money. Their idea is to start a business to market a new video game system (the computer science major developed the software, the engineer created the hardware). They estimate it will take $5 million to $10 million to begin production, and they want to raise money by selling shares in the company to investors. They think their product is superior, and they are aware of the time factor. They want to get started as soon as possible. Your field of expertise is securities marketing.

Can the three of you just begin advertising for investors?

What steps must be followed to comply with the law?

How much time is needed before potential investors can be approached legally?

Reference no: EM131674930

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