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Series 79: Underwriting & New Financing
Series 79 practice questioneasyPrivate Placements

What is a key feature of Regulation D Rule 506(b)?

  1. AIt requires public advertising in all cases
  2. BIt permits sales to an unlimited number of accredited investors and up to 35 sophisticated non-accredited investors, without general solicitation✓ Correct answer
  3. CIt is available only to foreign issuers
  4. DIt registers the securities automatically with the SEC
Explanation

Why BIt 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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