November 7, 2013 | Wharton College

A disruptive new way for small companies to raise capital is putting a spotlight on the readiness of a tightly regulated securities market to adopt the openness of the Internet — and has sparked debate about whether the change will spur economic growth or become another vehicle for fraud. The U.S. Securities and Exchange Commission is proposing a set of rules to let start-ups and other small companies sell securities for the first time through crowdfunding. Checking the perils and promise---.