Buying Stock on Social Media Now Possible: New Platform Converts Loyal Customers into Loyal Shareholders on the Web and Social Media
By Gene Marbach, Group Vice President at Makovsky + Company
Fees are paid by the companies and amount to $10 per shareholder annually and the platform has been vetted by the proper authorities such as the SEC. The CSOP is based on the regulatory framework of a traditional Direct Stock Purchase Plan (DSPP); however, it is far easier for the customers to use.
According to Barry Schneider, LOYAL3’s CEO, “CSOPs provide access for the 82% of Americans who are not directly invested in companies. Our platform seeks to democratize the markets, making stock ownership possible for tens of millions of everyday people. CSOPs empower the 99%, which is why we’re committed to a core principle of no fees, ever.”
One of the first to sign up is Fifth & Pacific Companies, the purveyor of women’s apparel and accessories under such well-known brand names as Juicy Couture, Lucky, Kate Spade, among others (NYSE: http://finance.yahoo.com/q?s=FNP&ql=1). To see how it works go here: https://csop.loyal3.com/signup/csop/intro/0130ca77-8929-487d-8196-0d1a76b4caff
According to research, customer-owners spend more, refer more and stay customers longer than ordinary customers. As a result, client companies are motivated to convert customers to shareholders to increase loyalty, branding and liquidity. LOYAL3 cites a November 2009 study done by Opinion Research Corporation that indicates customer-owners are highly loyal and this doesn’t change if and when the stock price goes down. In fact, customer-owners get even more loyal through stock volatility. When asked to provide guidance to management during difficult times, a majority of them only ask that management not sacrifice the quality of their products and services.
LOYAL3’s platform is also available for companies undertaking offerings. Companies engaged in an IPO, which makes their stock publicly available for the first time, may also use LOYAL3′s platform for the offering of an IPO CSOP, also known as a “Social IPO™.” And companies making a follow-on public offering may use it to offer a Follow-On CSOP. Both the IPO CSOP and Follow-On CSOP are offered alongside a traditional underwritten public offering.
For additional information, please visit http://www.loyal3.com/about/company_overview/ or you can contact Jason Brausewetter, Managing Director, at Jason.brausewetter@loyal3.com or by phone: 917/373-5677.
P.S. My colleague, Daniela Viola, recently penned an article about cybersecurity and the SEC’s disclosure regulations. The story, entitled “Roadmap for Risk Disclosure,” appeared in IR Update and can be found here: http://www.makovsky.com/Roadmap-for-Risk-Disclosure
You may also be interested in...
Published: July 19, 2012 By:
