The Securities and Exchange Commission is reviewing rules that prohibit social network websites from helping investors buy equity stakes in start-ups. While a slew of sites already help small businesses pitch and connect with people in an online network—to facilitate donations—those sites are currently restricted from allowing the purchase of equity stakes. SEC Chairman Mary Schapiro said this week a review of these “strategies” is underway and wrote that 150 organizations and individuals are behind a petition that calls for crowd-funding share issues of up to $100,000. For more on the pros and cons of this regulatory shift, read The Wall Street Journal‘s coverage.
