Baron Capital Enterprises

Over the past several years, regulatory changes that were meant to help protect investors have caused small-cap companies to hit a wall when attempting to raise capital.

Here are a few facts most investors do not know:

Online trading firms do accept penny or subpenny stocks to be deposited into your account either by certificate or electronically.

Mainstream firms on Wall Street do not accept subpenny stocks and will only accept penny stocks if you have large cash balances on deposit ranging from $500,000 to over $1,000,000.

Some firms no longer accept stock certificates at all.

Depository Trust Clearing Corporation (DTC) is the only entity with the power to make securities DTC eligible and move through their electronic system, known as DTC FAST or DWAC. DTC does not approve subpenny stocks and approves very few penny stocks.

Currently there are less than a handful of clearing houses that will accept penny stocks or subpenny stocks and more stop taking them every day. Those that do accept these stocks have restrictions on the amount of shares they will carry in-house and may also enforce sale limitations.

Secure Online Investments

To the average investor who places their buy/sell order online the aforementioned is not an issue, but what if you had the chance to get in on the ground floor of the next great thing? What if you received information on a private placement to purchase stock from a company looking to raise capital? Unless you knew for certain that this company was going to be trading on an exchange where you could deposit your investment to cash out, you would never engage in the investment. No one will accept your certificates unless you know where to look especially if everything remains status quo.

Baron Capital has a two-year plan to implement all elements of its business model, some of which are not listed here in order to protect against intellectual property infringement.

Baron Capital plans on turning the clock back 20 years to offer both the small-cap company and the investor the opportunity to utilize the public markets to raise capital and make money.

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