US government supports sales of private company shares

Author: | Published: 13 Oct 2011

US investors will be able to purchase shares in private companies not subject to US Securities & Exchange Commission (SEC) registration and disclosure requirements, if legislation drafted by US Representative Patrick McHenry is passed.

Under the registration exemption proposal, private company securities offerings would be limited to an annual amount raised of $5 million and individual investor holdings would be capped at $10,000 and 10% of investor annual income.

“The idea is limiting people to an amount they can afford to lose,” University of Nebraska College of Law professor Steven Bradford said. “$10,000 seems like more than most people in the general public can afford to lose.”...