The Securities and Exchange Commission on Wednesday lifted a decades-old rule that banned hedge funds and other alternative investment managers from marketing their products directly to consumers.

Now hedge fund and private equity titans such as SAC Capital and Blackstone Group (NYSE: BX) will be able to reach out to potential investors through the customary marketing venues of television, billboards, print ads and the Internet.

The rule change also affects venture capital firms, allowing them to broadly solicit potential investment targets.

The idea behind dropping the ban is twofold: to open up more investment choices to
American consumers of a certain income, and to expand funding opportunities for small businesses and start-ups seeking seed money from investors.

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