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This past Wednesday, the Securities and Exchange Commission (SEC) adopted amendments expanding the definition of “accredited investor” to include individuals who hold certain professional certifications/licenses or have certain “credentials,” as determined by the SEC. Current Definition of “Accredited Investor”.
The problem in taking such money rests in the legality of taking money from non-accredited investors, people who do not meet the SEC standard for making non-public company investments. And even more recently, “crowd sourcing” has been enabled by the Internet – seeking many investors at a small amount per investment.
What would the SEC say about your investors? Email readers, continue here…] The problem with taking friends and family money rests in the legality of taking money from non-accredited investors, people who do not meet the SEC standard for making non-public company investments. An important exemption.
The problem in taking such money rests in the legality of taking money from non-accredited investors, people who do not meet the SEC standard for making non-public company investments. And now that “crowd sourcing” has been enabled using the Internet – seeking many investors at a small amount per investment. The legality issues.
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The legal issues The problem in taking such money from “FFF” investors often is taking money from non-accredited investors, people who do not meet the SEC standard for making non-public company investments. It is worth checking with an attorney to see if such investors are truly exempt. Does issuing a PPM insulate the company?
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