With the passage of legislation earlier this year to allow for intrastate crowdfunding, comes the next step in helping crowdfunding take off: HB 5273, a bill to define and allow local stock exchanges. We are very excited to see this idea to continue to move forward. This would open the way for MI businesses to put themselves on a local stock exchange (regulated in HB 5273 and registered with the state) and allow MI residents to buy stocks from those businesses on the stock exchange list.
The larger stock exchanges (New York Stock Exchange, for example) are not reachable for the smaller companies. Local Stock Exchanges would be a great way to afford a similar opportunity to these businesses who are not up to the large stock exchange level; those very businesses who are growing the Michigan economy.
Amy Cortese, Author of a book called Locavesting and an expert in crowdfunding provided testimony on the positive impact this could have on Michigan and how Michigan could become the leaders in this type of investment of small businesses.
We look forward to working with Rep. Nancy Jenkins on this legislation as it moves through the process and are excited to see this idea being discussed.
Nikki Brown is a legislative associate for the League handling economic development and land use issues. She can be reached at [email protected] or 517-908-0305.