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SEC Approves Crowdfunding For Startups

New businesses will soon be able to raise raise money online and give investors a stake in the company.

The Securities and Exchange Commission just approved a proposal that would allow startups and small businesses to solicit relatively small sums of money on the web.

The rule would allow entrepreneurs to raise up to $1 million a year from investors. Critics say this sort of crowdfunding does not protect investors – or companies.

Guest

  • Marty Schenker, executive editor of Top News for Bloomberg. He tweets @mschenker.

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