Letter Of Comment

We’ve been making fashion accessories out of dryer lint since we were in high school. It’s taken some time, but we’ve managed to turn our weird little hobby into a fairly lucrative enterprise. Excel-Lint Accessories, LLC is now a profitable company with multiple employees. The next step on our organizational journey is to go public, so we sent our registration statement to the SEC and are waiting to hear back.

What we get back from them will be a “letter of comment”: a document that (a) acknowledges our registration statement has been received, and (b) offers us pointers on what in that statement needs to be changed before we can start issuing shares of Excel-Lint stock.

Letters of comment don’t mean we’ve done anything wrong; their purpose is to make sure that the share issue process is clean, transparent, and goes off with as few hitches as possible. Any time a company is looking to issues shares, whether it’s their first time or their zillionth, they have to go through this registration statement/letter of comment process.