LanX is for two types of investors. The first group would consist of in-state, accredited or institutional investors who can afford to make large placements between $100,000 to $2 million. These investors make the initial share purchase from the management of the companies coming public. This group includes the corporate management who generally will control a large block of stock at the initial offering.
The second group is anyone who has the money to invest in the state, and who can satisfy the basic investor criteria for access to trade in these shares. As with any online trading service, there are some requirements that must be met to protect investor interests. All investors would use the special trading platform designed to support local firm share trading, and shares might trade in increments as low as $1,000 per transaction. Over time, with experience, these transactions limits might be relaxed as well.
Our philosophy is embodied in the slogan, “One percent for local.” In other words, if an investor currently has $1,000,000 in equities, we would suggest they consider $10,000 to be available for selective investments in local firms. Of course, all investors should be careful about every investment, but using this heuristic will make plenty of money available to local firms, and then they have to persuade investors that they deserve it.
