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Competition: Will Crowdfunding Help Small Businesses Raise Capital?

SEC approves proposed rules that would permit companies to sell securities through crowdsourcing.

By Michelle A. Samaad | Updated on October 24, 2013

The Securities and Exchange Commission voted this week to propose rules that would permit companies to offer and sell securities through crowdfunding.

Crowdfunding is a term used to describe an evolving method of raising money through the Internet, according to the SEC. For several years, this funding method has been used to generate financial support for such things as artistic endeavors like films and music recordings, typically through small individual contributions from a large number of people.

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