Crowdfunding Bill: Notes from NYTimes article

​Here is link to the NYTimes article.

Its always amazing how people keep making the same mistakes. Those students of history remember the Wall Street abuses common before the creation of the SEC and the establishment of the ’33 and ’34 acts to both register securities and regulate the markets.

What we are regulating here is greed. and abuse. It hasn’t gone away and, as human nature, it never will.

Small registered securities can cost up to 17.5% of their proceeds in issuing costs. These costs are legal, accounting fees, printing fees and sales fees. And there is an after market.

I would review minority shareholder rights on a state by state basis. There is going to be a lot of litigation and a lot of failed deals. Some for business reasons, many for fraud or perceived fraud.

There will be a lot of lambs to the slaughter on this one. Then, they will either shut it down or increase regulation and oversite. Both are necessary otherwise you are letting the foxes into the chicken coops.