alleryStart learning →After the US Securities Act of 1933, startup investing was
Aopen to all via advertising
Blimited to family, angels, VCs
Cfinanced by stock exchanges
Drun mainly by state banks
Answer & Solution
Correct answer: B. limited to family, angels, VCs
Rules against general solicitation of unregistered securities kept startup investing a word-of-mouth activity among insiders.
Keep practising Startup Company
Browse all Startup Company questions for CA Final, or explore more Strategicfinancialmanagement topics.
Related questions
In prize draw crowdfunding, what does a donor receive?Venture capital is best described as a subdivision of which kind of investing?Why can scalability make a startup attractive to investors?Peer-to-peer lending, also called crowdlending, belongs to which crowdfunding type?In equity crowdfunding, what does a backer receive in exchange for the money pledged?Title II of the US JOBS Act let startups publicly advertise securities provided that only Y Combinator's 2005 accelerator paired seed funding withThe mythical unicorn was chosen as a name for billion-dollar startups to represent their