Securities laws are a balancing act between companies’ desire to raise money and investors’ need for protection. Congress recently changed Rule 506 to permit advertising. Critics worry that this change

Securities laws are a balancing act between companies’ desire to raise money and investors’ need for protection. Congress recently changed Rule 506 to permit advertising. Critics worry that this change will permit fraudsters to attract more victims. It is true that Rule 506 limits public solicitation to accredited investors. But just because accredited investors are financially secure, does not mean they have investment savvy. (Think doctors and lawyers.) Should Congress have made this change?

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