Money Forum World

James M · Joined: 08 Nov 2007 Posts: 2119

I own well 100% shares of a small company. ..now I'd like to set up a broker account with ameritrade using my company. .. can i?? now if I have investors who could like to invest money into my corpration.. and I purchase stocks for them through my company broker account. can I do that?? and give them their return? and if I charge people can I use that as a income?

Melanie Gregory · Joined: 08 Nov 2007 Posts: 2109

You could form an investment club. Otherwise I think it can be a mutual fund, which is costly to start and regulated by the SEC. Or a hedge fund, which requires your investors to meet certain qualifications.

PhatWallet · Joined: 08 Nov 2007 Posts: 2032

It sounds like you want to set up your mutual fund, in which people can purchase and sell shares. Kipplingers Magazine had an article on this some number of months ago they really talked with someone who did it.

It takes about $100K in legal fees and the like, you must follow stringent SEC rules, etc. shortly, unless you have more than ten Million of other peoples money, the fees are too high for you to do this yourself.

You can be able to pursue a close end fund, but it doesn't sound like you want to do this.

Basically, since the depression after the 1929 stock crash, it's hard to do this.