Capital Formation and Structuring

Capital formation and structuring in securities law refer to the processes through which businesses raise money from investors to fund their operations and growth. This involves creating a set of financial instruments, like stocks and bonds, that can be sold to interested buyers. Structuring ensures that these instruments comply with legal regulations, protecting both the company and its investors. In essence, capital formation is about gathering financial resources, while structuring ensures that the way these resources are gathered adheres to the law, promoting transparency and fairness in the investment market.