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Divided SEC proposes lifting advertising ban on private stock deals

Restrictions could be lifted on hedge funds selling certain private stock offerings in the mass market

The US Securities and Exchange Commission yesterday proposed allowing hedge funds and other businesses to mass market certain private stock offerings without adding restrictions or spelling out how firms must verify they are selling to investors allowed to participate in the deals.

The plan, which would fulfill a mandate from Congress, is a win for businesses and Republican lawmakers who were concerned the SEC would move to lift a decades old ban on advertising such stock offerings while attaching restrictions they believed would essentially nullify the ban's reversal.

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