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by bencollier49 4711 days ago
Not sure I completely understand this - what's the position in the States, can incorporated entities advertise the sale of stock to the public?

In the UK that's basically the distinction between a limited company and public limited company (PLC).

Gods help anyone who tried to find a way to sell stock in a limited company to the general public. Prison would beckon, I suspect.

2 comments

Actually, the UK is ahead of the US in equity (and debt) crowdfunding (the JOBS act is moving the US to the same place gradually). See, for instance, http://www.seedrs.com/ (or http://www.growingbusiness.co.uk/crowdfunding-your-next-sour... for an overview).
I don't get how this isn't illegal.

Limited companies are restricted from selling shares to the public. How do they get around it?

EDIT: Scratch that, looks like the FSA green-lighted it. Wow.

We can because of the JOBS act. Basically, if you have 1 million in assets or 200k/year in income, you can invest as a member of the general public.