SEC opens door to startup investing for all
WASHINGTON - A new form of crowdfunding is coming soon that will allow startups to raise money by selling stock to Main Street investors.
The Securities and Exchange Commission on Friday adopted rules implementing a 2012 law that opened the door to securities crowdfunding. The vote was 3-1 at a public meeting.
For investors, it's a chance to make a small profit and possibly get in early on the next Twitter, Instagram or Uber.
But it's also risky, given that a majority of startups fail. About half of all small businesses shut down within the first five years. Some critics also warn that investment crowdfunding is ripe for fraud.
Desktop NewsClick to open Continuous News in a sidebar that updates in real-time.
Tales of paranormal activity surrounding the Old State Capitol
The Louisiana Red Cross gives out free smoke alarms in two neighborhoods
LSU to wear uniforms saluting fallen WWI heroes Saturday
Mega Millions jackpot reaches $1 billion ahead of Friday drawing
Power restored in downtown Baton Rouge after electrical fire causes hours-long outage