Estrada Hermanos, Inc , a corporation incorporated and doing business in Florida, decides to sell $1 million worth of its common stock to the public The stock will be sold only within the state of Florida Jose Estrada, the chair of the board, says the offering need not be registered with the Securi...

Gustavo is right Under Section 3a11 of the Securitie ...

Estrada Hermanos, Inc., a corporation incorporated and doing business in Florida, decides to sell $1 million worth

Question:

Estrada Hermanos, Inc., a incorporated and doing business in Florida, decides to sell $1 million worth of its to the public. The stock will be sold only within the state of Florida. Jose Estrada, the chair of the board, says the offering need not be registered with the Securities and Exchange Commission. His brother, Gustavo, disagrees. Who is right? Explain.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...