In other news, the Securities and Exchange Commission has removed a ban on hedge funds using advertisements to raise money. The SEC voted 4 to 1 in favor of changing the rule, which will allow firms to advertise publicly to anyone they want. However, only accredited investors with a minimum net worth of $1 million, excluding their primary residence, or income of at least $200,000 a year for each of the prior two years will be permitted to invest in the private offerings. The rule was originally included in Congress' Jumpstart Our Business Startups Act last year, which aimed to help small businesses and create jobs. Hedge funds and other firms will able to begin advertising to the public later this year. Under the ban, hedge funds and similar companies were only allowed to market to wealthy individuals.
Lastly, Chinese investigators said executives of British drug company GlaxoSmithKline ( GSK) have confessed to acts of corruption within the company. According to the Ministry of Public Security, GlaxoSmithKline executives admitted to bribery and tax crimes in preliminary questioning. The ministry said in a statement that the individuals committed the fraudulent acts in order to sell products or raise prices.
The chatter on Main Street (a.k.a. Google, Yahoo! and other search sites) is always of interest to investors on Wall Street. Thus, each day, TheStreet compiles the stories that are trending on the Web, and highlights the news that could make stocks move. -- Written by Brittany Umar.