In September 2013, the SEC significantly relaxed restrictions that had been in place for over 80 years on companies’ ability to advertise for investors. The old rule, generally referred to as the “ban on general solicitation,” had been a central component of U.S. securities laws since the Great Depression. Before the ban went in place, it was not uncommon to see public advertisements to buy the next “can’t miss” stock.
To read the original article: Why Startups Are Stepping on the Brakes Despite SEC Giving Green Light to General Solicitation : Under30CEO
