SEC proposes rule change for investors

[inhouston]

SEC - for accredited investors - investment exclusions exist.
Investment exclusions are based on a net-worth calculation.

Dodd-Frank bill - proposed new rules will exempt primary residence from net worth calculations.

SEC - is reviewing proposed changes - may affect marginal accredited investors - and possible stock prices if passed.

[rovo]

Sept 9, 2011 15:59:11 GMT -5 @inhouston said:

SEC - for accredited investors - investment exclusions exist.
Investment exclusions are based on a net-worth calculation.

So what kind of "exclusions" exist?

[rovo]

From the link provided by D.I.:

Under the Securities Act of 1933, a company that offers or sells its securities must register the securities with the SEC or find an exemption from the registration requirements. The Act provides companies with a number of exemptions. For some of the exemptions, such as rules 505 and 506 of Regulation D, a company may sell its securities to what are known as "accredited investors."

I think they are talking about private sales of unregistered securities. As such, I don't see how it will have much of a negative affect on the markets for registered securities. It may well have a positive affect.

[tyfighter3]

I don't think it will affect anything. I think that it pertains to LLC that ask for money to do one thing. I get these offers in the mail every once in awhile, like investing in a oil well and a share is a certain price but if it is a dry well you could incur more cost than you put in and they only want accredited investors to invest. This change will keep the small guy from losing his house. I may be wrong in this view of it.