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We developed a comprehensive Equity Crowdfunding Chart Comparison below for all crowdfunding requirements that includes Reg A+ (Tier 1 and Tier 2), Reg D 506 C, and Reg CF. Our chart creates an easy-to-read visual representation of all the different requirements, so you can pick which form of crowdfunding works best for you. Requirements for […]
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A transfer agent is a company or financial institution that helps manage securities recordkeeping duties for private and public entities. Transfer agents perform many functions, including but not limited to: ensuring compliance with the Securities and Exchange Commission (SEC) following an initial public offering (IPO) or private placement, company merger/acquisitions, processing stock splits, administering shareholder […]
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President Trump issued executive order 13,772 on February 3, 2017, which aimed to regulate the U.S. financial system with a set of core principles. In response, the U.S. Department of the Treasury prepared a report titled, “A Financial System That Creates Economic Opportunities: Capital Markets”, to identify all laws and regulations that are either compliant […]
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On October 26, 2016, the Securities and Exchange Commission adopted amendments to change Rule 147 and creating new Rule 147A. Additionally, amendments will be made to Rule 504 of Regulation D. These changes are intending to modernize how issuers can raise money to fund their businesses. Amendment to Rule 504 Rule 504 of Regulation D […]
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When you attempt to start any small business or other venture and need funding, crowdfunding is an excellent option. Crowdfunding allows for funding through various investors and entrepreneurs using different web portals. Often, the desired funding involves contributions made by investors, which is known as securities-based crowdfunding. Since this type of crowdfunding requires you to […]
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In order to operate, a crowdfunding service intermediary is required to register with the Securities and Exchange Commission (SEC) either as a broker or funding portal. Funding portals are designed to be engaged in managing securities transactions for the accounts of others through an independent crowdfunding website. This article is provided as a compliance guide […]
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Equity-based crowdfunding enables entrepreneurs to access investors who are interested in raising capital for their startup or private businesses. Crowdfunding has evolved to become an accessible multidisciplinary means of raising capital for projects that cannot raise funds through traditional means or are not significant enough to gain the attention of banks and venture capitalists. The […]
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The Depository Trust and Clearing Corporation (DTC) recently proposed Rule SR-DTC-2015-012 regarding CUSIP eligibility that went into effect on January 1st, 2016. The proposed rule allows DTC to charge issuers a $1,000 fee when required to make a new CUSIP DTC eligible after completion of a corporate action. A CUSIP is similar to a serial […]
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On August 5, 2015, the Securities and Exchange Commission adopted the pay ratio disclosure rule that requires public companies to disclose the ratio of CEO compensation to the median compensation of employees starting in 2017. Through this rule, companies will provide investors information to analyze a CEO’s compensation relative to the compensation of its employees […]
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Proposed Amendments Would Allow Regulation A Tier 2 Offerings for Listing on OTCQB The SEC’s amendments to Regulation A of the Securities Exchange Act became effective on 6-19-2015. If all requirements are met, Regulation A allows for smaller companies to offer and sell up to $50 million in equity in a one-year period while relying […]