Discussion Response 100 words....2 paragraphs max...looking for a short response with sources if required

Review the posts made by your peers. In response to your peers, Agree or disagree with your classmate's post.  Post facts that might change the outcome of the analysis. Ask at least one direct question while you comment on their response.

Joanne Appleton

As a non-profit, educational institution, Private University would be exempt from registering with the Securities and Exchange Commission before offering its "Shares in Learning" certificates to the public. There are limited exceptions to this rule but securities issued by nonprofit religious, charitable, educational, benevolent, or fraternal organizations are all exempt from registering with the SEC," (Seaquist, section 31.1, para. 7).

If the certificates were issued by Private College, a for-profit institution that does business in all 50 states, the offerings would be required to be registered with the SEC, if the certificates were considered commercial paper. This prompt of the discussion was challenging as I could not determine if the certificates in this scenario are considered commercial paper. Commercial paper, which are financial instruments like checks, drafts, notes and certificates of deposit, are exempt from registration if their maturity date is not more than nine months, (Seaquist, section 31.1, para. 7). However, since Private College is offering its "Shares in Learning" certificates with no maturity date, these shares would not be exempt from being registered with the SEC.

References:

Seaquist, G. (2012). "Business Law for Managers." Retrieved from https://content.ashford.edu/