The rules stem from the 2012 JOBS Act, which was established to help fledgling companies raise capital to expand and create jobs. As of Friday, the rules raise the cap on the amount of equity a business can issue privately, under what’s known as “Reg A” to $50 million, from $5 million.

Looking to take advantage of this new rule as well? Access the world’s largest database of broker-dealers click here.  Brokerdealer.com will set you up with an investment opportunity.

In addition, they do away with a requirement for businesses raising more than $20 million to pay separate fees and file paperwork to the federal Securities and Exchange Commission, as well as regulators in every state where investors purchase shares. The offerings are open to mom-and-pop investors.

To find out how some small firms are looking forward to this new rule, read this WSJ article. 

The post Under ‘Reg A’, Firms Ready to Raise Up to $50 mil appeared first on BrokerDealer Blog.