A part of the Jumpstart Our Business Startups (JOBS)Act is
A) banks are required to provide special financing for start ups.
B) differences between qualified and unaccredited investors were removed.
C) the SEC is no longer allowed to regulate funding of business start ups.
D) Congress removed some of the restrictions on using crowdfunding to allow small investors to buy equity in start-ups.

Question

Quizplus · Accepted Answer

The JOBS Act removed some of the restrictions on using crowdfunding to allow small investors to buy equity in start-ups, making it easier for start-ups to raise capital. Option A is not mentioned in the context of JOBS Act. Option B is partially correct, but it is not entirely true that differences were removed; instead, it increased the number of investors who can qualify as accredited investors. Option C is not true; the SEC still regulates funding of start-ups but with some exemptions provided by the JOBS Act.

A Part of the Jumpstart Our Business Startups (JOBS)Act Is