(via: WSJ.com) This week, thousands of new and small private businesses launched public marketing blitzes to sell shares in their companies — a tactic that security regulators barred more than 80 years ago to protect investors from get-rich-quick scams.
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On Monday, the SEC lifted the ban, allowing small private companies to publicize investment offers without having to register an initial public offering—which can be a costly and burdensome requirement for those businesses—provided the sales are limited to wealthy investors. The public fundraising move is a central provision of the Jumpstart Our Business Startups Act, approved by Congress last year, which seeks to ease restrictions on small businesses raising cash to grow.
Full Story: Small Businesses Take Fundraising Public (WSJ.com)