Going Public – Associated Person(s) – Pages 70 – 71
If your company is doing a Direct Public Offering, or DPO, and the company is selling its stock to raise money, the shares are sold by your officers and directors. To avoid broker/dealer registration, you must comply with the SEC’s special rule which allows you and other officers, directors and employees of your company to sell your securities without registering as a broker/dealer.
Under this rule, you and other officers, directors and employees of your company, called “associated persons” of the issuer by the SEC, can sell your company’s securities without registering as a broker/dealer if such Associated Persons comply with the limitations in the Rule.