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Much of the publicity concerning the JOBS Act pertains to crowdfunding and the SEC’s failure to meet its December 31, 2012 deadline to establish its rules. The media and market participants embraced the possibility of crowdfunding. The game changer for companies seeking to raise capital is not crowdfunding but elimination of the ban on general solicitation and advertising in Rule 506 offerings. On July 10 nike air max 90 ultra essential homme , 2013, the SEC completed its rules eliminating the ban on general solicitation and advertising in Rule 506 offerings.
The primary differences and similarities between crowdfunding and amended Rule 506 are summarized below.
Maximum Investment l Rule 506 l Crowdfunding
Crowdfunding limits the amount an investor can invest in an offering in a 12-month period to 10% of the investor’s annual income or net worth (incomes of $100,000 or more) or the greater of $2,000 or 5% of annual income or net worth (incomes of less than $100,000).