General Solicitation under New Rule 506: Crowd Funding on Steroids
Nonfiction, Reference & Language, Law, Business
| Author: | Private Placement Handbook Series | ISBN: | 9781311964793 |
| Publisher: | Private Placement Handbook Series | Publication: | September 13, 2015 |
| Imprint: | Smashwords Edition | Language: | English |
| Author: | Private Placement Handbook Series |
| ISBN: | 9781311964793 |
| Publisher: | Private Placement Handbook Series |
| Publication: | September 13, 2015 |
| Imprint: | Smashwords Edition |
| Language: | English |
The SEC has lifted an 80-year ban on general solicitation and start-ups and other Issuers for the first time can use public advertising to sell private offerings. Startups are now able to use advertising and general solicitations to fund private placements! The new Rule 506 may prove to be the answer to the prayers of startups frustrated with existing fund sourcing platforms. But it also has hidden dangers that will cause many issuers to continue to use the “old Rule 506.”
The SEC has lifted an 80-year ban on general solicitation and start-ups and other Issuers for the first time can use public advertising to sell private offerings. Startups are now able to use advertising and general solicitations to fund private placements! The new Rule 506 may prove to be the answer to the prayers of startups frustrated with existing fund sourcing platforms. But it also has hidden dangers that will cause many issuers to continue to use the “old Rule 506.”
