Crowdfunding is an evolving method of raising capital through the internet, generally through small individual contributions from a large number of investors. Crowdfunding has not been used as a means to offer and sell securities, because offering a share of the financial returns or profits from business activities could trigger the application of state and federal securities laws. Unless an exemption is available, an offer or sale of securities must be registered with the Securities Exchange Commission ("SEC") and in the states where the offering is made.
The Secretary of State's office adopted rules for crowdfunding in Mississippi. Those rules and other materials are available at Securities/Crowdfunding.
Crowdfunding study group meeting #1 (August 12,2014)
CROWDFUNDING STUDY GROUP MEETING #2 (January 21,2014)