Which Type of Equity-Based Crowdfunding Will,with SEC Approval,allow Unaccredited Investors

question 106

Multiple Choice

Which type of equity-based crowdfunding will,with SEC approval,allow unaccredited investors to invest?

• A)Type 1
• B)Type 2
• C)Type 3
• D)Soliciting investments from unaccredited investors is never allowed in crowdfunding.

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Definitions:

Capital Balances

The amount of money that partners or owners have contributed to a business or the retained earnings within a company.

Income Ratio

A financial metric that compares specific income components to total revenue or other earnings measures, often used to assess profitability or operational efficiency.

Capital Balance

Represents the amount of funds contributed by investors or owners plus retained earnings in a company.

SEC

The U.S. Securities and Exchange Commission, a federal agency responsible for enforcing federal securities laws and regulating the securities industry.