Lois Heck and Keith Ryan are organizing Beaufort Unlimited Inc. to undertake a high-risk goldmining venture in Canada. Lois and Keith tentatively plan to request authorization for 80,000,000 shares of common stock to be sold to the general public. Lois and Keith have decided to establish par of $1 per share in order to appeal to a wide variety of potential investors. Lois and Keith 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 Lois and Keith are behaving in a professional manner.