JOBS Act provisions eases restrictions, up to issuers to make sure investors are accredited.
On Wednesday, the Securities and Exchange Commission voted 4-1 to invite public comment on a proposal that would allow these companies to publicly market themselves.
The funds would still only be allowed to sell securities to accredited investors. An accredited investor is one whose net worth is $1 million or more.
“In recent years, the need for the prohibition against general solicitation has been the subject of increasing debate,particularly in light of changes in communication technologies.New technologies have caused many to question the feasibility and continued desirability of communication restrictions in private offerings,” Mary Shapiro, Chairman of the SEC, said.