Title IV Of The JOBS Act Lets Companies Crowdfund For Shares: What You Should Know

In April 2012, President Obama signed the JOBS Act into law. The Jumpstart Our Business Startups Act isn’t, at first glance, terribly exciting. Much of the bill is dense legalese that clarifies and extends the laws surrounding how businesses raise funds. It’s the type of reading that will make your eyes glaze over; with one major exception. Title IV of the bill allows ordinary people to make direct investments in companies in exchange for equity (or shares). It’s a radical change that could potentially revolutionize how savers invest their money, and how early-stage technology companies get the funds to bring their...

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