Series 79 practice questioneasyRegulation D
Under Rule 506(b) of Regulation D, how many non-accredited investors may participate in an offering?
- AZero
- BTen
- CThirty-five, but only if all are unsophisticated
- DUp to thirty-five, provided they are sophisticated and receive required disclosure✓ Correct answer
Explanation
Why D — Up to thirty-five, provided they are sophisticated and receive required disclosure
Rule 506(b) permits up to 35 non-accredited but sophisticated investors, as long as they receive proper disclosure. Exceeding this limit invalidates the exemption.
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