Advertise Private Stock for Sale to Investors (now its legal!)
(Updated Sept 12, 2013) It just got a little bit easier to raise money from angel investors. On July 10th, the SEC lifted a long-standing ban on “general solicitation for private securities deals“, which means that companies will now be able to advertise their stock for sale.
Private equity dealers are calling the rules “transformative” because it is the first real change implemented under the 2012 JOBS Act.
By lifting the ban on general solicitation, the SEC has created a new private equity offering called a 506(c), that will let private companies advertise their stock for sale to accredited investors.
