Research On The Legal Risks Prevention Of Equity Crowd-funding

The rapid development of Internet finance has made great changes in the whole financial market.In the course of the development,equity crowd-funding,an innovative investment method,has gradually entered into the view of the subjects in investing and financing area.Solving the problems of financing in small and start-up enterprises,equity crowd-funding also creates a new model of investment for the public investors and improves the vitality of the entire capital market.The development of equity has brought many benefits,but it has been hindered in China due to unclear legal status,imperfect protecting system of investment and many legal risks in the process of financing.Only by settling these obstacles and conflicts as soon as possible can equity crowd-funding boost the economic development of China and facilitate the development of small and start-up enterprises.Based on the prevention of legal risks in equity crowd-funding,this paper aimed to give some improving suggestions on existing legal risks in the development of equity crowd-funding under the premise of controlling the economic costs,and to provide reference for the construction of the equity crowd-funding system.The general framework of this paper is that first,analyzing the meaning as well as features of equity crowd-funding and making sure about its legal attributes under a legal framework;second,giving a theoretical analysis of equity crowd-funding and regulating the potential risks of it through basic principles;third,deeply analyzing the legal risks faced by three parties in the stock market,and learning related risk-prevention experiences from the United States and the United Kingdom;fourth,putting forward the suitable suggestions for the legal risk prevention of the equity crowd-funding in China.