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The JOBS Act
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renotime Offline
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Post: #1
The JOBS Act
I really think this is a game changer in the world of business.

Small start ups can now seek out investors through public channels, mainly crowd funding.

Basically, it's like kickstarter, but you can potentially see a return on your investment.

Right now only accredited investors can apply, (200k a year for the past 3 years or a million dollar net worth) but that is supposed to change next year.

The article goes into more detail.

For the first time in nearly 80 years, private startups and small businesses can raise investment funding publicly- using sites like Facebook or Twitter to help spread the word, and taking in investment online via equity crowdfunding sites who power the investment process in a more open and collaborative way.

So any of you guys that are looking to start a business or potentially expand an already existing business, this might be your best way to seek funding.

There are already a couple of equity crowdfunding sites up like wefunder and Angellist.

I think this is going to be huge. Just think if you had the chance to get in on a round of investing for Facebook when they were selling shares on the secondary market through Goldman Sachs.

You want to know the only thing you can assume about a broken down old man? It's that he's a survivor.
09-29-2013 10:00 PM
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defguy Offline
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Post: #2
RE: The JOBS Act
Wall street part 2. Bigger, better, more profitable.
09-29-2013 11:12 PM
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scorpion Offline
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Post: #3
RE: The JOBS Act
Sounds like this will be the next great avenue for hucksters and charlatans to part fools from their money. Nothing new there. Reminds me of this excerpt from Mackay's Extraordinary Popular Delusions and the Madness of Crowds (highly recommended).

Quote: In the mean time, innumerable joint-stock companies started up everywhere. They soon received the name of Bubbles, the most appropriate that imagination could devise. The populace are often most happy in the nicknames they employ. None could be more apt than that of Bubbles. Some of them lasted for a week, or a fortnight, and were no more heard of, while others could not even live out that short span of existence. Every evening produced new schemes, and every morning new projects. The highest of the aristocracy were as eager in this hot pursuit of gain as the most plodding jobber in Cornhill. The Prince of Wales became governor of one company, and is said to have cleared 40,000l. by his speculations.13* The Duke of Bridgewater started a scheme for the improvement of London and Westminster, and the Duke of Chandos another. There were nearly a hundred different projects, each more extravagant and deceptive than the other. To use the words of the Political State, they were "set on foot and promoted by crafty knaves, then pursued by multitudes of covetous fools, and at last appeared to be, in effect, what their vulgar appellation denoted them to be—bubbles and mere cheats." It was computed that near one million and a half sterling was won and lost by these unwarrantable practices, to the impoverishment of many a fool, and the enriching of many a rogue.

Some of these schemes were plausible enough, and, had they been undertaken at a time when the public mind was unexcited, might have been pursued with advantage to all concerned. But they were established merely with the view of raising the shares in the market. The projectors took the first opportunity of a rise to sell out, and next morning the scheme was at an end. Maitland, in his History of London, gravely informs us, that one of the projects which received great encouragement, was for the establishment of a company "to make deal boards out of saw-dust." This is no doubt intended as a joke; but there is abundance of evidence to shew that dozens of schemes, hardly a whit more reasonable, lived their little day, ruining hundreds ere they fell. One of them was for a wheel for perpetual motion—capital, one million; another was "for encouraging the breed of horses in England, and improving of glebe and church lands, and repairing and rebuilding parsonage and vicarage houses." Why the clergy, who were so mainly interested in the latter clause, should have taken so much interest in the first, is only to be explained on the supposition that the scheme was projected by a knot of the foxhunting parsons, once so common in England. The shares of this company were rapidly subscribed for. But the most absurd and preposterous of all, and which shewed, more completely than any other, the utter madness of the people, was one started by an unknown adventurer, entitled "A company for carrying on an undertaking of great advantage, but nobody to know what it is." Were not the fact stated by scores of credible witnesses, it would be impossible to believe that any person could have been duped by such a project. The man of genius who essayed this bold and successful inroad upon public credulity, merely stated in his prospectus that the required capital was half a million, in five thousand shares of 100l. each, deposit 2l. per share. Each subscriber, paying his deposit, would be entitled to 100l. per annum per share. How this immense profit was to be obtained, he did not condescend to inform them at that time, but promised that in a month full particulars should be duly announced, and a call made for the remaining 98l. of the subscription. Next morning, at nine o'clock, this great man opened an office in Cornhill. Crowds of people beset his door, and when he shut up at three o'clock, he found that no less than one thousand shares had been subscribed for, and the deposits paid. He was thus, in five hours, the winner of 2,000l. He was philosopher enough to be contented with his venture, and set off the same evening for the Continent. He was never heard of again.

"For I reckon that the sufferings of this present time are not worthy to be compared with the glory which shall be revealed in us.” - Romans 8:18
09-29-2013 11:45 PM
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