Sentences with phrase «allowing unaccredited investors»

At issue for the startup was the fact that it allows unaccredited investors to lend money, which could have qualified the company as a securities dealer.

Not exact matches

Scammers cometh: Randy Shain, founder of BackTrack Reports and investigative due diligence expert, predicts that with the SEC's decision to allow the solicitation of capital from unaccredited investors will come a new wave of scammers.

That particular provision of the legislation would allow businesses to give away pieces of their company to unaccredited investors in exchange for cash, or equity crowdfunding.

As such, most 506 (b) offerings are only sold to accredited investors (even though the Rule allows for the sale of up to 35 non-accredited investors), as the sale to any unaccredited investors requires significantly heightened disclosure to such investors, which can be costly and burdensome to provide, and may increase the exposure of an issuer to liability under federal and state securities acts.

Do a Regulation Crowdfunding offering for the unaccredited investors and at the same time a Title II offering, which allows for general solicitation of accredited investors and does not have the $ 1 million cap.

There are several other pertinent restrictions related to this exemption, such as a prohibition on general solicitation and a cap on the number of unaccredited investors allowed in an offering.

It is an easier form of raising money as it allows you to raise money from unaccredited investors without the myriad legal issues that often arise with these investors.

Since 2010, we've used Regulation A to allow more than 1,200 unaccredited investors to participate in private real estate offerings — many for the first time ever.