An Equity Token Offering is similar to the traditional equity stock. It gives investors tokens that form part ownership of the company. The token holders have the same privileges that a stockholder enjoys. The ETO is compliant with the SEC. therefore it has to submit to certain security laws. There are many benefits that come with investing in equity tokens.
Dividends that an investor earns are transferred to their wallet on the blockchain. The wallet allows highly secure digital transactions and therefore is a preferred mode. An equity token holder enjoys voting rights that a company provides. This ensures that transparency exists. Profits earned by the company are shared with the company. These profits are directly shared with the investors. Investors can sell their share to the company at market rates when they want to.
If a company does not have its own platform, they must register on a Equity token platform in order to hand out their tokens to investors. They have to provide the required documents to advance to the next step. Blockchain App Factory is an expert in ETO development and will ensure that you reach the best investors to fund your project. Get in touch with them to begin your Equity Token Offering right away.