The U.S. Securities and Exchange Commission voted unanimously to seek comment on a proposal to allow businesses to sell ownership stakes in their companies by soliciting investors over the Internet.

The SEC plan, advanced at a meeting in Washington today, would create rules for equity crowdfunding, which lawmakers intended to ease financing for startups and small companies when they authorized it in the 2012 Jumpstart Our Business Startups Act. The rules may give a boost to the nascent crowdfunding industry as they show the agency’s progress in advancing a backlog of regulations required under the JOBS Act and Dodd- Frank law.

Register or login for access to this item and much more

All Financial Planning content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access