Investing Along With The Crowd

Los Angeles Times
October 23, 2013

Michael Stocker speaks on the risks associated with equity crowdfunding for retail investors

The Securities and Exchange Commission voted to propose regulations that would allow individuals to invest in start-ups over the Internet.

"Proponents of crowdfunding have done a very good job selling the idea that mom-and-pop retail investors are now going to have access to this private club … when that's really just a fairy tale," said Michael Stocker, a partner at law firm Labaton Sucharow. "It's going to be a terrible mismatch of the most risky start-ups with the most vulnerable investors."