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“The land of the free”

March 29, 2021

During the Great Depression the U.S. Securities and Exchange Commission was formed in 1935 to protect widows and orphans from investment in securities. These “experts” accomplished that goal by segregating American citizens into two classes: “Accredited” and “Unaccredited” investors.

That meant that if you started a company and wanted to ask neighbors or the general public to buy shares in your company you could accept investments only from millionaires or a from a limited circle of family members.

Twenty-one years ago I attempted to finance a startup, for profit, Internet university and leaned to find those millionaires willing to take that risk. I could not advertise an offer to the public until eighty-six years after 1935 in 2013 when Congress passed reform legislation enabling companies to advertise to for investments from accredited investors.

This month new regulations go into effect that permit restricted amounts of investments from “unaccredited” investors.

And they call America the “land of the free and the brave.”

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