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Home / Firm Blog / Business Law / Crowdfunding: When securities are purchased pursuant to the crowdfunding provision of the JOBS Act, are they transferable?
30
March
2015

Crowdfunding: When securities are purchased pursuant to the crowdfunding provision of the JOBS Act, are they transferable?

 Investors cannot transfer securities purchased pursuant to the crowdfunding provision of the JOBS Act for 1 year beginning with the date of purchase. There are exceptions to this 1 year restriction for transfers: 

(i) to the issuer,

(ii) in a registered offering;

(iii) to accredited investors;

(iv) certain family members; or

(v) as may be limited by the SEC when it promulgates rules under the JOBS Act.

 

 DISCLAIMER: The adoption of the JOBS Act has raised many questions and issues related to Crowdfunding; these Frequently Asked Questions (FAQs) are intended to provide clarification.  The information below does not take the place of legal advice.  To protect against undesired and unintended consequences, one should consult with competent legal advisors.

 

Author; Pat Gallagher Categories: Business Law

About the Author

Pat Gallagher

Pat Gallagher

Attorney Pat Gallagher is founder of The Gallagher Law Firm overseeing its day-to-day operations, as well as the long-term strategic planning of the firm. He focuses his law practice on the needs of businesses and specializes in a wide variety of transactional matters, litigation and mediation. He received his J.D. legal degree from the Washington University School of Law in St. Louis, Missouri. Mr. Gallagher has litigated cases throughout Michigan before the American Arbitration Association, State and Federal Courts, Michigan Court of Appeals, Michigan Supreme Court and the United States Court of Appeals.

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