Four Things Marketers Should Know About the New General Solicitation Rules

For decades, private companies and investment firms have been forbidden from advertising that they are seeking investors. On September 23, however, one of the first provisions of the JOBS Act went into effect, lifting the 80-year-old ban on general solicitation of capital investments.

Many believe the result could be a large increase in businesses’ marketing and advertising their private securities offerings. Marketers should therefore be prepared to receive requests from people interested in taking advantage of the new crowdfunding provisions.

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