Wouldn't it be frustrating to have a great idea and not be allowed to talk about it?

A regulation passed in 1933 put drastic limits on how small businesses and start-ups could spread the word about their need for funding. The rules prevented them from advertising or “general solicitation,” limiting their outreach only to investors already known to them who met certain income and asset thresholds.

In today’s world, it didn't just prevent traditional advertising; it also meant they couldn't tap Twitter followers, Facebook friends or other social networks for help finding investors, since they couldn't talk about the opportunity with anyone who was not a qualified investor with whom they had a preexisting relationship.

On Sept. 23, a landmark revision contained in the JOBS Act took effect enabling small companies to publicly announce efforts to raise capital.


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