AI (Artificial Intelligence) tools aren’t new, per se, but big tech’s latest ventures into machine learning are bringing them to the forefront. AI may very well soon dominate all aspects of our lives, from driving cars to grocery shopping. In fact, many experts believe that AI will take over most manual labor, like manufacturing and warehousing, within the next 10 years. As a result, companies are sprinting to hire experts who can help develop these technologies, and it’s becoming increasingly difficult to keep up with AI’s ever-evolving capabilities.
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What Is an Accredited Investor?
According to Rule 501 of Regulation D, natural persons generally need to meet one of two criteria to be an accredited investor. First, either alone or jointly with their spouse, they must possess over $1 million in net worth, excluding the value of their primary residence. Alternatively, they must earn up to $200,000 (or $300,000 with a spouse) for the two previous years and should reasonably anticipate the same level of income in the current year. Entities must meet separate criteria to be accredited. Such entities may include certain financial institutions, trusts, and companies whose equity owners are accredited investors.
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Russia’s invasion of Ukraine and the first attacks on the nation occurred more than one year ago now. Since then, the war has taken a deadly toll on the people and nation of Ukraine. Thousands of people have lost their lives in this brutal conflict, and many more have been injured or displaced from their homes. Despite efforts to bring peace to the region, there is still no end in sight for this bloody conflict. As we mark the first anniversary of the crisis, it’s apparent just how far-reaching the impact of this war has been.
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Evidence suggests that often times issuers would rather bypass registration of their offerings with the Securities and Exchange Commission (SEC). Regulation D of the Securities Act contains several methods to avoid registration that come in the form of exemptions or safe harbors to registration. Regulation D was modified by the Jumpstart Our Business Startups Act (JOBS Act) which contained sweeping legislation to modernize federal securities laws. Title II of the JOBS Act went into effect in 2013, splitting the Rule 506 exemption of Regulation D into two different ones: Rule 506(b) which contained the exemption that existed prior to Title II of the JOBS Act taking effect and Rule 506(c) offering an alternative method of exemption as prescribed by Title II of the JOBS Act. Unlike earlier exemptions, Rule 506(c) of Regulation D permits general solicitation of private placement offerings, although only accredited investors are allowed to invest. This new rule serves as an alternative to Rule 506(b) which did not, and still does not, permit general solicitation. As you read about some of the differences outlined below, you may begin to understand why Rule 506(c) is the viable solution that so many investors and capital-raising companies have been seeking.
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For investors and business owners, Warren Buffett’s annual letter to Berkshire Hathaway shareholders is akin to the highly anticipated release of your favorite author’s latest novel. This year’s letter, published at the end of February, reviewed Berkshire Hathaway’s successful year in 2022 and, as always, featured key lessons from the famous investor.
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As we see digital financial assets and blockchain technology being adopted by larger and more high-profile companies, it is important to recognize that recent developments are the result of a longer process on innovation and investment. Even if some companies have not yet gone "all in" on blockchain, research and development has been going on behind the scenes as forward-thinking institutions explore the potential of this new technology.
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On the final day of February, the Supreme Court of the United States (SCOTUS) began hearing arguments in the case against the student loan forgiveness plan set forth by President Biden last year.
The SCOTUS decision will determine if the 43 million Americans with federal student loans will have to pay them back in full or not.
Without the burden of student debt, graduates could have more income available to put towards income growth opportunities, such as investing. Verified investing is one such opportunity for those who meet certain wealth and/or education criteria. Qualified investors are called “accredited investors” and can take part in private offerings. If the pool of qualified investors were to expand, it would make it easier for companies offering such opportunities to find accredited investors and fund their businesses.
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The U.S. Securities and Exchange Commission's (SEC) Office of the Advocate for Small Business Capital Formation (OASBCF) assists small businesses in accessing the public capital markets. Their goal is to advocate for solutions to address challenges faced by small businesses and their investors raising and deploying capital to make financing a reality for small businesses.
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As an entrepreneur, you have to wear many hats in order to be successful. After coming up with a brilliant idea, success comes down to developing that idea into a workable business plan, and then finding ways to finance your dream. Crowdfunding is a great tool for entrepreneurs, because there are tons of available online tools, but the trick is learning to leverage them in an effective way. Here are some tips to consider before launching your crowdfunding campaign:
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The US Securities and Exchange Commission (SEC) has proposed a new rule that could prevent investment advisers from holding client assets at cryptocurrency firms. The proposal aims to ensure that investment advisers comply with regulatory requirements for asset protection.
In doing so, the rule could potentially support businesses by providing greater regulatory certainty and investor protection, which can help to foster trust and confidence in the cryptocurrency market.
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