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View Diary: Would you invest in a dKos windfarm? [UPDATED] (217 comments)

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  •  Good advice (none)
    I was thinking about the minimum amount issue earlier.  Even setting aside all the legal and regulatory BS, there are administrative costs and inconveniences associated with each additional investor.  You probably don't want to deal with the expense of sending a bunch of tiny investors their quarterly check for $0.87, or whatever.  This is especially the case when one of the tiny investors ends up being the crank that sues you because they've decided they don't trust the way you're divvying up the profits.  We're all among friends here, but unfortunately, running an investment enterprise requires you to run it as a business, which means requiring some kind of reasonable minimum to make it worth your while.  Smaller investors can pool up, although, as this post suggests, there are legal issues there as well.

    The reason this is so tricky is that there's no legal issue if you simply decide to start a business and invite some friends to join up, but when you make an open invitation to people you don't have a prior relationship with, that's when you come within the scope of the securities laws.  Annoying, I know...

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