File this under recently discovered. The North American Securities Administrators Association (NASAA) has published a document inquiring; Are You An Informed Investor? Crowdfunding. It would appear the NASAA is not a fan of the Jobs Act – at least certain segments of it.
Certainly a benign title and yes, as we all are quite aware, investments have varying degrees of associated risk. The document quickly points out that crowdfunding is not legal until the SEC sorts a few things out but admonishes readers as to “Why Investors Must be Extremely Cautious About Crowdfunding.”
Some of the points are tenuous in declaring;
Crowdfunding investments are mostly illiquid and investors must be prepared to hold their investments indefinitely. It also may be difficult or impossible to resell these securities due to the lack of a secondary market.
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