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Blog

The Current State of Inflation and the Fed’s Interest Rate Hikes

VerifyInvestor.com

In late August, the Federal Reserve Chair, Jerome Powell, made a speech at the annual policy forum in Jackson Hole, Wyoming that scared investors into a major stock sell-off.

Why? The Fed warned that some pain is necessary to fight inflation and avoid more pain in the future. But as fear over forthcoming pain mounts, investors are losing faith in the trajectory of the market and stock prices are falling.

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What’s Happening with the NFT Crash

VerifyInvestor.com

If you have been keeping your eye on the NFT (non-fungible token) market as of late, you’ve seen it take quite the tumble. Since a peak in sales in January—over $12 billion USD—NFT sales have fallen considerably. They reached a 12-month low in June—just over $1 billion USD—and continued to fall another 26% in July.

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[Infographic] SEC Guidance For Verification Of International Accredited Investors

Mihir Gandhi

In terms of VerifyInvestor.com’s policy on foreign investors applying for US-based accredited investor status - When using our system, where our site refers to US documents or evidence, investors must provide US documents if available. Otherwise, they need to provide their country's equivalent. If neither is available, the investor should provide the best evidence they can obtain. The thresholds investors’ see on our site derive from the accredited investor definition and refer to US Dollars. Each investor’s foreign income or net worth should meet these thresholds after conversion into US Dollars. If the documents are in a non-English language, investors’ can provide translations of relevant excerpts. Formal or certified translations are not necessary; even just jotting down handwritten translations in the margins is acceptable. For the net worth test liability proof is necessary, a credit report is required if there is one available in the investor’s respective country.

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Sri Lanka’s Economic Issues and Collapse

VerifyInvestor.com

A government in disarray, an economy in collapse, and a people enraged. This is the present story in Sri Lanka. The story is a series of one government misstep after another, and now a nation is in turmoil.

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4 Points to Consider About Raising Capital for a Startup

Mihir Gandhi

With startups, it’s often never a matter of whether to raise capital. Raising capital is simply an entrepreneurial fact of life in many cases. It can be time consuming, complex and creative, and there are a number of important points to understand about the need to raise capital with a startup.

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Oil: Supply and Demand

VerifyInvestor.com

Crude oil prices in the U.S. have experienced a volatile summer, but overall they are dropping to some of the lowest levels seen in months. This is good news if you are going to the gas station — gasoline prices are consistently down from a record high of over $5 USD per gallon, on average, in early June. But why are they dropping, how low will they go, and what does it all mean for investors?

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Worker Unionization

VerifyInvestor.com

Unions are one-way, workers can gain leverage to negotiate working conditions, benefits, and compensation through the power of collective bargaining.

In the past year, petitions to unionize have been steadily increasing. According to the U.S. National Labor Relations Board, union representation petitions filed at the NLRB from ​​October 1, 2021, to June 30, 2022, have increased 58% over the same period the previous year.

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Securities-Based Crowdfunding: Two Models Examined

Mihir Gandhi

With the passage of the JOBS Act in 2012, the Securities and Exchange Commission (SEC) had its marching orders: eliminate the ban on advertising and general solicitation in two scenarios. The result is that small business and entrepreneurs have two new securities-based crowdfunding options that reduce compliance and reporting obligations, via exemptions, and that open the doors on raising capital.  The JOBS Act also transformed Regulation A into a mechanism which empowers crowdfunding under the new Regulation A+. Read More...

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‘Reasonable Steps’ and the Safe Harbor for Accredited Investor Verification

Mihir Gandhi

The SEC’s Rule 506(c) of Regulation D permits advertising and general solicitation when private companies are raising capital. The catch is that every issuer relying on a Rule 506(c) offering must take “reasonable steps” to verify that all investors are accredited.

SEC guidelines outline two different ways that an issuer can demonstrate a reasonable effort has been made to verify investors’ accreditation status. Read More...

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Coinbase and the SEC - (Un)registered…

VerifyInvestor.com

The SEC continues to grapple with the idea that cryptocurrencies are securities. Coinbase, the crypto trading platform, is the latest company involved in the cryptocurrency debate with the SEC.

A former Coinbase employee was just recently charged with wire fraud for buying coins with his brother, knowing they would soon be available for trade on the Coinbase platform. Together, with a friend, they traded 25 coins to the tune of a $1.5 million dollar profit.

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