Which of the following is false about crowdfunding?
A) As of May 2016, under U.S. SEC rules under the JOBs Act, small investors are allowed to purchase shares of private companies on designated crowdfunding platforms.
B) Under new U.S. SEC rules companies can raise up to $10 million for a 12-month period through a crowdfunding campaign, but must provide potential investors with financial statements.
C) Under new U.S. SEC rules, entrepreneurs that raise less than $500,000 are allowed to provide specific information from their tax returns that are reviewed by an independent tax accountant.
D) Under U.S. SEC rules, the amount an unaccredited investor can invest depends on their income and net worth, with investors with an annual income or net worth < $100,000 only allowed to invest $2,000 a year or 5% of the lesser of their income or net worth, and investors with a net worth > $100,000 allowed to invest up to 10% or the lessor of their income or net worth.
E) Under SEC rules, the maximum investment that can be put into startups through online equity crowdfunding in any given year is $100,000.
Correct Answer:
Verified
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