Adam Gottbetter's Schools

• Lehigh University School of Business & Economics , Class of 1989 Received a BS in Finance

Adam Gottbetter's Publications

• Primary SEC laws and regulations, Adam Gottbetter February, 2011 Over the course of his career as an investment advisor and legal executive in the field of finance, Adam Gottbetter has acquired considerable experience in conducting business with the Securities Exchange Commission (SEC). Founded in 1934 as a way for the federal government to regulate the stock market, the SEC initially set out to eliminate the types of abuses that led to the stock market crash of 1929. Here is a brief overview of some of the most important legislation that pertains to the SEC. Securities Act (1933) – The first major financial regulation law passed after the Crash of 1929, the Securities Act required that all parties involved in the soliciting or sale of securities register with a federal body. Although the legislation was designed to replace the ineffectual state securities laws, it left them largely intact due to questions over constitutionality. Securities Exchange Act (1934) – The legislation responsible for the creation of the SEC, the Securities Exchange Act laid the foundation for financial market regulation and trading in securities. Unlike the Securities Act of 1933, which only regulated the original issue of securities, the Securities Exchange Act granted the SEC authority over both original and secondary trades of securities. After a 1938 amendment, the Securities Exchange Act allowed for the creation of self-regulatory organizations such as the National Association of Securities Dealers (NASD) and the Financial Industry Regulatory Authority (FINRA). Investment Company Act (1940) – Designed to increase investor confidence in emerging investment companies, the Investment Company Act established a different set of regulations for companies. In addition to regulating conflicts of interest and requiring company disclosure of certain information, the Act also defined mutual funds and enacted a number of restrictions on their use. Investment Advisers Act (1940) – Created to regulate the business activities of investment advisers, the Act came about as a result of an SEC report to Congress. Along with the Investment Company Act of 1940 and the Securities Exchange Act of 1934, the Investment Advisors act of 1940 forms the backbone of modern financial regulation law. Sarbanes-Oxley Act (2002) – One of the more recent pieces of securities exchange legislation, the Sarbanes-Oxley Act established a new set of standards for all public accounting firms and public company boards in the United States. The Act, drafted in response to the corporate accounting scandals of companies such as Enron and WorldCom, sought to restore investor confidence in the securities market. It is important to note that the legislation applies only to public companies, given their proximity to securities exchange.

• Self-Underwritten Public Offerings at Gottbetter & Partners, LLP March, 2011 by Adam Gottbetter Almost a decade ago, Gottbetter & Partners, LLP recognized a need for a new process by which companies could go public. With an Initial Public Offering (IPO), a company must pay high investment banker fees, which it could lose if the offering does not succeed. The firm’s experienced staff thus engineered the self-underwritten public offering, otherwise known as the Gottbetter Public Offering (GPO). In a GPO, Gottbetter & Partners works closely with a company to complete all necessary legal work and pair it with service partners and vendors capable of supporting the process. After a company becomes publicly listed, it gains access to public equity markets and the ability to use stock as a currency. In addition, the company offers liquidity to those already invested in it and may motivate its employees with public company stock options. A GPO avoids both the underwriting fees associated with an IPO and the cost of merging with a public shell company required by a reverse merger. GPOs require far less time than IPOs and empower smaller companies to go public, opening several options for the company’s future. With Gottbetter & Partners, companies do not need to dedicate a significant portion of their time and resources to the GPO process. Instead, the firm handles all necessary corporate formation and organization, secures financing options to gain working capital, registers the company with the SEC, and files required forms for stock listing with FINRA. The entire process demands about 180 days, after which the company’s stock will appear on the OTC markets. Gottbetter & Partners, LLP minimizes the processing time by filing all essential paperwork concurrently. When the stock becomes listed, the company has complete control over who owns every last share of equity.

• Private Investment/Public Equity (PIPE) Transactions, by Adam Gottbetter (2/2) April, 2011 continued from >Private Investment/Public Equity (PIPE) Transactions, by Adam Gottbetter (2/2) Private Investment/Public Equity (PIPE) transactions provide a number of advantages to qualified businesses, the ability to forego a pre-closing Securities and Exchange Commission review standing apart as one of the most attractive benefits. On December 1, 2005, federal regulators instituted an amendment to the Securities Act of 1933, an action that essentially mandated an SEC assessment for small companies seeking capital from certain sources. According to the legal amendment, only companies with a market cap of over $700 million and previous issued debts of $1 billion or more in public offerings earn distinction as a “well-known seasoned issuer,” or WKSI. In order to file an automatically approved shelf registration statement and avoid the lengthy SEC review process, a company must first gain distinction as a WKSI. This places many enterprises at an obvious disadvantage regarding quick implementation of a funding drive. Companies that lack the time to work with the SEC can usually utilize capital from a PIPE transaction in as little as several days. PIPE transactions rarely take more than a few weeks to complete. About the author: An expert in fiscal management who owns two prominent financial services firms, Adam Gottbetter also boasts extensive experience as a legal professional. Formerly serving as a Managing Partner of Kaplan, Gottbetter & Levenson, LLP, Adam Gottbetter moved on in 2003 to found his own practice, Gottbetter & Partners, LLP. In conjunction with his legal duties as the Managing Partner of Gottbetter & Partners, he devotes equal attention to his leadership responsibilities as the proprietor of Gottbetter Capital Group, Inc. and Gottbetter Capital Markets, LLC. Adam Gottbetter holds a Bachelor of Science degree in Finance from Lehigh University College of Business and Economics in Bethlehem, Pennsylvania, as well as a Juris Doctor from the Benjamin N. Cardozo School of Law at Yeshiva University in New York. A longtime member of the American Bar Association, Adam Gottbetter retains licensure as an attorney in Connecticut, New York, and the United States District Courts for the Southern and Eastern Districts of New York.

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