A small business can raise capital in a number of different ways, including by selling its securities. Under the federal securities laws, every offer and sale of securities, even if to just one person, must either be registered with the Securities and Exchange Commission (“SEC”) or conducted under an exemption from registration. One of the exempt offerings wherein SEC permit companies to offer and sell securities is through crowdfunding.
Crowdfunding is an evolving method of raising capital that has been used to raise funds through internet for a variety of projects. Title III of the JOBS Act created a federal … Read more