Bill and Emma owned their own home and had two children. They had some money in savings, but Bill was thinking about investing in the stock market so he could have the money for the kid’s education and an emergency fund. However, Emma wasn’t happy with his decision because she didn’t want to take major chances with their future. In fact, Emma discovered a way for everyday people to make oil and gas investments, thanks to a new concept in the market. Here is more about it.
The FTC and Crude Oil Investing
Ever since the 1920s, the average person was excluded from directly investing in oil projects. You can buy oil company stocks, but these opportunities are like buying any other stocks. Until lately, only accredited investors could make oil and gas investments in wells and related projects.
What Does Accredited Mean?
If you want to invest in crude oil projects, you must have assets of one million dollars or more, and this excludes home equity. You can also qualify if you are making $200,000 a year or if you and your spouse have a joint income of at least $300,000. These rules exclude most people from making some of the best oil and gas investments.
The Importance of the JOBS ACT
The JOBS Act (Jumpstart Our Business Startups) was passed in 2012, and by 2013, it allowed accredited investors to take advantage of equity crowdfunding. However, in May of 2016, it also included non-accredited investors.
How Does Crowdfunding Work?
With crowdfunding, people can invest directly in oil well projects. These let energy companies get the funds they need for starting up a project, and each investor receives a share of the profits (royalties). Some companies let you invest as little as $1,000.
If you would like to learn more about opportunities for oil and gas investments, come to Crudefunders. Discover how you can invest as little as one-thousand dollars in oil projects, when you visit us
