Summarize an article from the Wall Street Journal Essay - 1

Summarize an article from the Wall Street Journal - Essay ExampleTorrens and other Proponents of Equity-based crowd funding deem it as a commendation in times of deepening economic crises. Since businesses themselves ar not in a position to increase employment, they can provide a bigger ingathering potential by dint of coronation opportunities. Supporter of the notion believe that such opportunities should only be provided through online outlets as it is extremely cost-effective. It would also make the investment market more open to millions of investors (Torrens & Slavinsky, 2012). This method further enables businesses to secure and reach out to a greater client base, who are naturally motivated to avail the business succeed.On the other hand, opponents of this idea believe that legalization would only cause ill-informed clients to lose their money on failing companies. It will pose a higher risk and will subsequently influence the purchasing power of people as individuals lo se money due to their bad decisions. There are high chances that it will further lead to a downward spiral of recession. Moreover, in that location are greater chances of foul play and fraud companies may advance that may further cause the general population to incur heavy losses. It will also significantly impact legitimate businesses, as investors are fooled into drop for fraudulent companies. Therefore, businesses should take the merits of alternate investment methods in to account. (Torrens & Slavinsky, 2012)It is quite ostensible that though, equity based crowd funding may have several pros, notwithstanding they can only be enjoyed if the businesses give the crowd massive returns on their investments. Businesses can obtain huge number of clients, who had initially supported the company through their investments. However, from the peoples perspective, investing in equity differs from investing in stocks that can be liquefied whenever the client wants. Equity is illiquid and as a result, there is no clear way out of this