A lot of people dont realize that that you can begin trading stock OTC by just filling some paperwork with the SEC though lawyers fees for that paperwork are no

A lot of people dont realize that that you can begin trading stock OTC by just filling some paperwork with the SEC though lawyers fees for that paperwork are not cheap. You can do what is called direct public offering and directly sell your stock without using an exchange aka over the counter. Many people refer to these stocks as penny stocks and the OTC market as the pink sheets. What these new laws are trying to change is the way you register to sell OTC and the people you are allowed to sell to. The real problem is that just like no one trusts penny stocks and the otc market no one is going to trust crowdfunded stocks. They are going to be full of scams and pump and dump schems. Just look at the movie wolf of wall street for an example of the kind of scheming that goes on in the otc markets