SEC Issues Proposal on Crowdfunding

On October 23, 2013 the Securities and Exchange Commission (“SEC”) unanimously voted a proposal to allow companies to raise funds by issuing equity through crowdfunding. If passed, the proposal should be good news for all those small to medium companies hoping to increase their fund-raising capabilities by issuing securities and selling them to crowdfunding investors.

Some of the limitations set by SEC under the proposed regulation are:

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