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The story of all the small investors surprised me, because i thought there were more rules about who could invest in a company. Are these rules new, or do i mis
by jacalata 13y ago
The story of all the small investors surprised me, because i thought there were more rules about who could invest in a company. Are these rules new, or do i misunderstand something?
- bretpiatt 13y agoI'm a "suit", without a "Esq.", so if you want real detail here perhaps an attorney with a focus on equity issuance can reply. Rules do exist about non-accredited investors buying shares of private companies or shares in public company private placement. Those rules give the "little guy" extra rights. This is why you won't see them investing capital in venture led financing rounds or able to trade on places such as Second Market. Non-accredited investors end up with equity in private companies all the time through "Founder's stock" or grants from the option pool. They may even put in "seed money" to get it started so often in a venture backed company you'll have some early capital from what gets called "friend and family money".