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Can I resell my investment?

Investments in crowdfunding assets should be viewed as a long-term and illiquid investment.

Securities purchased in a crowdfunding transaction generally cannot be resold for a period of one year, unless the securities are transferred:

  • to the issuer of the securities;

  • to an “accredited investor”;

  • as part of an offering registered with the Commission; or

  • to a member of the family of the purchaser or the equivalent, to a trust controlled by the purchaser, to a trust created for the benefit of a member of the family of the purchaser or the equivalent, or in connection with the death or divorce of the purchaser or other similar circumstance.

Liquidity is the ease with which you can sell your securities after you have purchased them. Buying securities in businesses pitching through truCrowd cannot be sold easily as they are unlikely to be listed on a secondary trading market such as NASDAQ, AMEX or the New York Stock Exchange. Even successful companies rarely list securities on such an exchange. In addition, if you purchase B Investment Shares, these are non-voting shares and may not be attractive to potential buyers. Without a public market to find a buyer for securities it may be more difficult to sell them. Investment in crowdfunding assets should be viewed as a long term and illiquid investment. Current rules state you must generally keep any purchased securities at least twelve months from the acquisition date.

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