1. (a) If securities of the same class are publicly traded on an active market of substantial depth, the recent market price of such securities.
2. (b) If securities of the same class have not been so publicly traded, the price at which securities of reasonably comparable corporations (if any) in the same industry are being traded, subject to appropriate adjustments for the dissimilarities between the corporations being compared.
3. (c) In the absence of any reliable indicator under subsection (a) or subsection (b), the earnings history, book value and prospects of the issuer in the light of market conditions generally. The initial public offering price shall not be less than $2.00 per share.

In connection with those offerings specified in subdivision (d) of Section 25140 of the Code, the Commissioner will not consider the fairness of the offering price, except insofar as the offering price in its relation to the price at which securities of the same class have been sold by the issuer to others would make such other securities promotional shares and would result in unreasonable promoters' profits or participations. In connection with other offerings, securities shall be sold at a price which is fair to the issuer and the purchasers. In determining whether the price is fair, predominant weight will be given to the following:

Note: Authority cited: Section 25610, Corporations Code. Reference: Section 25140, Corporations Code.

History

1. Amendment filed 5-3-83; effective thirtieth day thereafter (Register 83, No. 19).