The U.S. Securities and Exchange Commission on Wednesday voted to adopt changes to its decades-old definition of a professional investor in order to allow more Americans to buy shares in private companies.
FILE PHOTO: The U.S. Securities and Exchange Commission logo adorns an office door at the SEC headquarters in Washington, June 24, 2011. REUTERS/Jonathan Ernst/File PhotoWASHINGTON: The U.S. Securities and Exchange Commission on Wednesday voted to adopt changes to its decades-old definition of a professional investor in order to allow more Americans to buy shares in private companies.
The agency hopes the changes to the will boost retail investors' access to the swelling pool of companies that are staying private for longer and longer, but it has sparked worries among some investor advocates who say even seasoned investors struggle to spot problems with private companies.