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Business BluesMany small corporations are equally owned by two people. In such cases,it can be troublesome when one owner wants to sell the corporation and theother does not. The owner who wants to sell can’t simply choose to dissolve thecorporation. However, he or she can go to court to force a dissolution. This actis called an involuntary dissolution. Involuntary dissolutions are sometimespermitted when shareholders are hopelessly deadlocked.To avoid deadlock, shareholders of small corporations should sign a buysellagreement at the time of the corporation’s formation. Such an agreementwould help avoid costly lawsuits.Conduct Research Visit the library or use the Internet to research corporate lawresources. In addition to deadlock, what other grounds for involuntarydissolution will courts consider?648 Unit 6: Starting a Businessinvestors by ensuring that purchasers can learn the true nature of securitiesthey buy and by providing a way to discover fraud and unfair practices.The Securities Act defines a security as a money investment thatseeks to make a profit solely because of another’s efforts. Many thingsare included within this definition, such as corporate stocks, interestsin savings and loans, interests in racehorses or sports teams, and evensales of coins.The Securities Exchange Act created the Securities and ExchangeCommission (SEC) in 1934 to administer federal securities law. TheSEC is an independent agency consisting of five commissionersappointed by the president. The SEC employs lawyers, accountants,securities analysts, and others. It regulates sales of securities and thebrokers, dealers, and bankers who sell securities. A crucial function ofthe agency is making sure that potential investors are informed about thenature of their investments. One way to accomplish this aim is throughthe registration requirement. Any company that falls under the jurisdictionof the SEC must file a registration statement and a prospectuswith the agency before it offers securities for sale.The registration statement is a general description of the securitiesand of the company making the offer. The prospectus containsa detailed view of the stock offering for potential investors. The