An issuer is conducting a private placement under Rule 506(c) of Regulation D and utilizes social media for advertising. Which of the following must be true regarding investor verification?

1. AThe issuer can rely on investor self-certification as accredited without further steps.
2. BThe issuer must take reasonable steps to verify each investor’s accredited status beyond self-certification.✓ Correct answer
3. CNo limitations exist on who may invest, so verification is not needed.
4. DRule 506(c) does not allow general solicitation, so social media advertising is prohibited.

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