Investors of modest means are now going to be able to take a chance on startups the way that venture capitalists and angel investors can, The New York Times' Stacy Cowley reports. Companies seeking to raise up to $50 million--even though they are not yet publicly traded--will be able to advertise to investors online and through social media. Under the old regulations, companies that didn't want to have to file reports with the Securities and Exchange Commission only could sell shares to "accredited investors with an annual income of more than $200,000 or a net worth of at least $1 million."
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