Swimming with Sharks
Posted on September 27, 2016 by John Elliott
New Crowdfunding Rules Let Small Investors Join a Riskier League
New rules from the Securities and Exchange Commission, which took effect May 16, 2016, open many doors for "ordinary people" to invest in start-ups and other small businesses.
The issuers of the securities that they invest in will not need to affirm the investors' financial sophistication nor provide them with audited financial statements. The underlying law was signed four years ago, but it has taken a while for the SEC to write the rules, all 685 pages of them.