Friday, November 09, 2012
Michigan Releases Q/A on Crowdfunding for Investors
A memorandum answering frequently asked questions about crowdfunding was released for investors by the Michigan Securities Division, with the caveat that companies may not issue securities via crowdfunding under Title III of the JOBS Act until the SEC adopts final rules. The type of crowdfunding referred to in the Q/A involves issuers receiving funding by selling small amounts of equity to a large number of investors. The Q/A answers questions such as how Title III of the JOBS Act affects Michigan investors, how crowdfunding differs from traditional investing, how much money can be raised through crowdfunding, and what the requirements are for broker-dealers and funding portals.