Jas Bosley and Nadine Jaffe are organizing Precious Metals Unlimited Inc. to undertake a high-risk gold-mining venture in Canada. Jas and Nadine tentatively plan to request authorization for 90,000,000 shares of common stock to be sold to the general public. Jas and Nadine have decided to establish par of $0.10 per share in order to appeal to a wide variety of potential investors. Jas and Nadine feel that investors would be more willing to invest in the company if they received a large quantity of shares for what might appear to be a “bargain” price.
Discuss whether Jas and Nadine are behaving in a professional manner.