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In this paper, we show that too strong investor protection may harm small firms and, thus, entrepreneurial initiatives. This situation is particularly relevant in crowdinvesting, which refers to a recent financial innovation originating on the Internet. In general, securities regulation offers...
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One of the enduring principles of federal securities regulation is the mantra that bonds are securities, while commercial loans are not. Yet the corporate bond and loan markets in the U.S. are rapidly converging, putting significant pressure on the disparity in their regulatory treatment. As...
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Securities crowdfunding — the sale of unregistered securities to the public over the Internet — has come under attack … in crowdfunding companies. Even assuming that this may be true from a purely financial perspective, these critics are … building. These nonfinancial returns of crowdfunding are readily apparent in the donation and reward context, and this …
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-stage financing through Internet crowdfunding. Teens, being masters of the Internet, are well positioned to exploit this new … opportunity, with the upshot being that securities crowdfunding may become an important way for youthful entrepreneurs to fund …
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In the last dozen years, economists have produced a considerable body of research suggesting that the historical origin of a country’s laws is highly correlated with a broad range of its legal rules and regulations, as well as with economic outcomes. Much of this research has dealt with rules...
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Crowdfunding remains a bit of an unknown in business finance. Securities crowdfunding, as a subset of that financing … offering and investment limits), there is a lot of variation beyond those fundamental similarities. Whether the crowdfunding … through crowdfunding remains to be seen. Experience should give regulators enough information about crowdfunding investors and …
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