The financial sector of the U.S. has been evolving in the last few years with many groups looking to new ways of creating funding opportunities for themselves. Crowdfunding has become one of the most influential areas of investment sources over the last few years with the profits of businesses being split between those who choose to invest. In the last few years, this form of fundraising has been growing with the SEC bringing in the reg D crowdfunding portal that allows trades to be made on securities based on funds raised across various platforms.
Reg D crowdfunding portal funds are limited
When looking to raise funds from online sources to trade securities, the SEC has created a set of regulations designed to limit the amount of money that can be raised. For many, these platforms are a great way of raising funds and the maximum amount that can be raised by a fund across 12 months is limited to just over $1 million. Crowdfunding platforms are an excellent option but the SEC is trying to protect individuals by limiting the amount of money that can be invested by a single individual over a full calendar year.
Funds must be registered with the SEC
When looking to invest with a reg D crowdfunding portal, the individual fund must be led by a company that is registered with the SEC as an online intermediary. Working with any company that is notr registered in the correct way with the SEC can cause problems in the future and limit the level of profit that can be made. To get daily updates follow our Twitter page.
