The Next Evolution in Investing – Securities Crowdfunding

Daniel Penzing
Written by
Last update:

What is Securities Crowdfunding?

Crowdfunding is one shortcut to obtaining funds. Thereabouts, it’s a loan. That is why it’s called a loan but uses the same premise as equity. The difference with a loan is the interest on the money that is loaned to you.

Letting Everyone Participate in Securities Crowdfunding

There is one mammoth development that is going to change the world of finance and investing. With the enactment of the JOBS Act, anyone is free to register for crowdinvesting.

The JOBS act was passed in April 2012 and it aims to help spur capital formation. The Gramm-Leach-Bliley Act (also known as the Financial Modernization Act of 1999) authorized the Securities and Exchange Commission (SEC) to create rules for publicly traded companies that would facilitate the raising of capital. However, the rules were not released until 2012.