Title III of the JOBS Act is the Capital Raising Online While Deterring Fraud and Unethical Non-Disclosure Act of 2012, or the CROWDFUND Act. It was signed into law by President Obama on April 5, 2012. Crowdfunding will be legal once the SEC adopts crowdfunding rules (within 270 days of when the CROWDFUND Act was signed into law), and registers funding portals.
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The Jumpstart Our Business Startups Act, or JOBS Act, was passed with bipartisan support and signed into law by President Obama on April 5, 2012. It was intended to encourage funding of small businesses in the US by easing various securities regulations. The JOBS Act includes the CROWDFUND Act, which enables crowdfunding.
The Securities Act of 1933, also known as the "truth in securities" law, was enacted to protect investors following the stock market crash of 1929 and the Great Depression that ensued. Its main objectives were to ensure that investors received complete and accurate information regarding the securities they were planning to purchase, and to prohibit fraud in the sale of securities. The Securities Act follows a disclosure philosophy, i.e. it is not illegal to sell a poor investment, if it is accurately disclosed as such. It is only illegal to make false statements or present a misleading view of the investment. Companies are required to disclose important financial and other information by filing a registration statement with the SEC.