4 Things To Know As Equity Crowdfunding Rules Take Effect

Law360, New York (May 13, 2016, 5:43 PM EDT) -- Four years after Congress passed the landmark Jumpstart Our Business Startups Act to expand capital-raising tools for small companies, rules governing equity crowdfunding — enabling mom-and-pop businesses to sell securities to unaccredited investors — go live Monday, ushering in a new era eagerly watched by enthusiasts and skeptics alike.

Equity crowdfunding, whereby privately held businesses can raise capital from the public through digital platforms, marks the final piece of the JOBS Act to take effect. The long-awaited arrival follows extensive deliberation by the U.S. Securities and...
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