What will happen if the SEC chooses to permit crowdfunding?

Chris Barsness, startup, finance, law, and tech nerd

Caveat Emptor.  The general idea of giving small companies easier access to capital sounds like a good idea in theory.  There are always scams and frauds out there.  Seemingly smart people invest money all the time, even when it sounds too good to be true.  

We will have to wait to see what SEC rules or state changes come out, but investors need to be prudent with their money no matter what, whether its $100 or $100,000.  My feeling is that it will create its own set of problems that will need to be worked out (i.e. more regulations or disclosure requirements which kind of defeat the purpose).

See question on Quora

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