Series 7 practice questioneasyAlternative Investments — Private Placements
Private placements are typically offered under which SEC regulation?
- ARegulation D✓ Correct answer
- BRegulation A
- CRegulation S
- DRegulation T
Explanation
Why A — Regulation D
Private placements are securities offerings that are exempt from full SEC registration under Regulation D. Reg D provides several exemptions (Rules 504, 506(b), and 506(c)) that allow companies to raise capital from accredited investors and a limited number of sophisticated non-accredited investors without the time and expense of a full public registration.
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