Professor Sjostrom Participates in National SEC Panel on Small Business Capital Formation
Professor William K. Sjostrom is one of only four scholars in the nation selected for a panel on small business capital formation, at a national forum hosted by the Securities and Exchange Commission (SEC) in Washington, D.C. The all-day forum takes place today, November 19, 2009, starting at 9:00 a.m. ET, and will be available live on the SEC’s website at www.sec.gov.
Prof. Sjostrom will participate on a panel discussing the SEC’s definition of “accredited investors” starting at 11:15 a.m. ET. Banks, investment funds, and high net-worth individuals who meet certain financial requirements may qualify as “accredited investors,” allowing them to invest in private and limited offerings, an important funding mechanism for the small business sector. Expanding the pool of accredited investors – whether by changing the current definition or providing for additional exemptions to it – would allow more investment in small business capital markets. However, in both the academic and business communities there is continuing discussion about striking an appropriate balance between such expansion and investor protection. Professor Sjostrom and fellow panelists will explore dimensions of the definition and describe its impact on small businesses.