SEC rule change would allow hedge funds to raise money by advertising to the public

The Securities and Exchange Commission voted Wednesday to allow hedge funds and other private firms to raise money by advertising to the public for the first time in decades, a dramatic loosening of the rules governing the investing landscape. Currently, firms that issue private stock are allowed to solicit only wealthy individuals, who can presumably withstand potential losses. But by October, hedge funds and others will be able to advertise to the masses via e-mail, billboards or even Facebook — expanding their reach to a much wider circle of potential investors. More in The Washington Post here.