TribLIVE

| Business


 
Larger text Larger text Smaller text Smaller text | Order Photo Reprints

SEC lifts ad ban for hedge funds

On the Grid

From the shale fields to the cooling towers, Trib Total Media covers the energy industry in Western Pennsylvania and beyond. For the latest news and views on gas, coal, electricity and more, check out On the Grid today.

By The Associated Press
Thursday, July 11, 2013, 12:01 a.m.
 

For the first time, hedge funds will be allowed to advertise to the general public under a rule adopted Wednesday by federal regulators.

The Securities and Exchange Commission voted, 4-1, to lift a decades-old ban that prevents hedge funds, private equity firms and other private investment managers from marketing their products to a wide audience.

Hedge funds are still allowed to sell securities only to an exclusive group of investors — those with a net worth of at least $1 million excluding their primary residence, or annual income of more than $200,000 in each of the two most recent years. About 7.4 percent of U.S. households have a net worth of $1 million or more.

Hedge funds are investment pools that use complex trades to seek big returns. They command trillions of dollars in assets. The ban on general advertising has been in effect since 1933.

Subscribe today! Click here for our subscription offers.

 

 
 


Show commenting policy

Most-Read Business Headlines

  1. Trib 30 stocks drop to four-month low
  2. PPG submits offer for French sealants, adhesives business unit
  3. Natural gas industry buys share of Super Bowl spotlight
  4. Wall Street closes January on down note; Dow sheds 251 points
  5. Consumer comes to the rescue as companies step back
  6. Phelan: Fuel-saving tips for winter driving
  7. Obama seeks $215M for precision medicine initiative
  8. Consol Energy posts $74M profit in fourth quarter
  9. Subaru BRZ still needs upgrades
  10. Kennametal plans plant closings, job cuts in fallout from oil and gas decline
  11. BNY Mellon expands  role for treasury exec