Series 79 practice questioneasyPrivate Placements
What is a key feature of Regulation D Rule 506(b)?
- AIt requires public advertising in all cases
- BIt permits sales to an unlimited number of accredited investors and up to 35 sophisticated non-accredited investors, without general solicitation✓ Correct answer
- CIt is available only to foreign issuers
- DIt registers the securities automatically with the SEC
Explanation
Why B — It permits sales to an unlimited number of accredited investors and up to 35 sophisticated non-accredited investors, without general solicitation
It permits sales to an unlimited number of accredited investors and up to 35 sophisticated non-accredited investors, without general solicitation Rule 506(b) is a private placement safe harbor with investor limits and restrictions on general solicitation. The absence of general solicitation is one of its defining features.
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