Series 79 practice questionhardRegulation D
Which of the following is TRUE regarding general solicitation in a Regulation D Rule 506(c) offering?
- AIssuers may generally solicit if all purchasers are verified accredited investors✓ Correct answer
- BGeneral solicitation is always prohibited under Regulation D
- CUp to 35 non-accredited investors can be solicited by any means
- DGeneral solicitation only allowed if the issuer files a Form S-1
Explanation
Why A — Issuers may generally solicit if all purchasers are verified accredited investors
Rule 506(c) uniquely allows general solicitation provided all buyers are verified accredited investors. The trap is confusing this with the stricter limitations of Rule 506(b).
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 995+ Series 79 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related Underwriting & New Financing questions
- In which scenario is information permitted to be incorporated by reference in an SEC registration statement?
- When building the order book during an IPO, which investor type typically has the greatest influence on price discovery?
- Which professional is most responsible for providing a comfort letter to underwriters in support of due diligence?
- An affiliate of a listed company wants to sell restricted stock under Rule 144. Which is a condition for sales under…
- Which of the following investors would automatically qualify as an accredited investor under Regulation D?
- Which of the following is a typical feature unique to a selected dealer agreement (SDA) as opposed to an agreement…
- A private placement under Rule 506(b) includes several non-accredited investors. What additional requirement applies…
- A private biotech firm is raising $12 million through a private placement under Regulation D Rule 506(c). The company…