The JOBS Act and Crowdfunding: Harnessing the Power-and Money- Of the Masses Case Solution & Answer

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The April 5, 2012, President Barack Obama signed the Act (JOBS) Jumpstart Our Business Startups radically change the landscape for many businesses to obtain capital. One of the most interesting parts of the Act is Title III of the Act crowdfund, which allows entrepreneurs and small business owners to sell limited amounts of equity in their companies to a large number of investors through social networks and quantities various Internet platforms. Before crowdfund Act, the sale of equity investments through crowdfunding for all practical purposes was unlawful under the securities laws of the United States. The Act seeks to exempt from the registration requirements of crowdfunding expensive and allows crowdfunding websites to avoid broker rating, which would impose substantial costs of enrollment in these sites. By crowdfund Act, share-based crowdfunding has the potential to create funding opportunities for entrepreneurs without funds and countless small businesses. Also you can offer investors new ways to diversify their portfolios. However, the benefits are not without risk crowdfunding. Given the combination of unsophisticated investors, the company inherently risky, and the zeitgeist has changed rapidly crowdfunding regulation should be approached cautiously.
by
Abbey R. Stemler
Source: Business Horizons
5 pages.
May 15 2013: release date. Prod #: BH527-PDF-ENG
The Employment and Crowdfunding: Harnessing the power and the money For the masses of the solution