The Securities and Exchange Commission is set to regulate crowd-funding activities in the country to protect the investing public from the abuse of fund-raising innovations typically designed for start-up companies.
Crowd-funding refers to a method of fund-raising whereby money is sourced from a large number of individuals usually through an online platform. This method allows investors to obtain access to investment opportunities and enables business start-ups and small and medium-sized enterprises (SMEs) to access a new source of funding for their investment and operations through the internet.
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