3c hapter - Index of

230 Notes
2 Will Payne, “How Kansas Drove Out a Set of Thieves,” Saturday
Evening Post, Dec. 2, 1911, courtesy of the Office of the Kansas
Securities Commissioner, www.ksc.ks.gov/edu/bluesky.html.
3. Marilyn B. Cane and Peter Ferola, “Back to the Future: The States’
Struggle to Re- Emerge as Defenders of Investors’ Rights,” Business
Law Journal, May 1, 2005. Vol. 5, Issue 2. bizlawjournal.ucdavis.edu/
archives/vol-5-no-2/ Back- to- the- Future.html.
4. Dan Ernst, “Blue Sky Laws and the Progressive Regime,” May 23,
2009 www.legalhistoryblog.blogspot.com/2009/05/ blue- sky- laws- andprogressive-
regime.html.
5. See Section 4(6) of the Securities Act.
6. In 1982 when Reg D was adopted, less than 2 percent of the population
qualified as accredited investors. But given inflation and rising
home values, the portion of the population that qualified climbed
to more than 8 percent, according to the SEC. Home values have
been battered, however, and the 2010 Dodd- Frank financial reform
bill revised the accredited investor standard to exclude the value of
an investor’s primary residence, which for many people makes up
the bulk of their net worth. So the number of accredited investors is
probably closer to 2 percent of the population again.
7. In 2010, more than half of households with a net worth of $25 million
or more invested in private equity and venture capital, according to
Wall Street Journal columnist Robert Frank. http://blogs.wsj.com/
wealth/2010/11/10/ ultra- rich- pour- back- into- hedge-funds/.
8. SEC Office of Small Business Advocacy.
9. This is known as the intrastate offering exemption under section 3(a)(11)
of the Securities Act.
10. For example, one Silicon Valley lawyer counsels, “When raising
money, for a variety of reasons, it is generally recommended to only
target accredited investors.” “Clipping the Wings of Angels? New
Accredited Investor Standards Contained in Dodd- Frank Wall Street
Reform Act,” A View from the Valley, July 20, 2010. www.mattbartus.
com/ clipping- the- wings- of- angels- new- accredited- investor- standardscontained-
in- dodd- frank- wall- street- reform-act/.
11. Niall Ferguson, The Ascent of Money, Penguin, 2008, p. 91.
12. Adam Shell, “Will Stocks’ ‘Lost Decade’ Usher in Another Bull
Market?” USA Today, Jan. 4, 2010. www.usatoday.com/money/markets/
2010-01-03-2010- outlook- stocks_N.htm.
13. Stephen Gandel, “The Case Against Goldman Sachs,” Time, April 22,
2010. www.time.com/time/business/article/0,8599,1983747,00 .html.
14. Steve Fishman, “The Madoff Tapes,” New York, Feb. 27, 2011 http://
nymag.com/news/features/berniemadoff-2011-3/.
15. Louise Story, “A Secretive Banking Elite Rules Derivatives Trading,”
New York Times, Dec. 12, 2010. www.nytimes.com/2010/12/12/
business/12advantage.html.