SIE practice questionhardRegulation A+
A startup company wants to raise $35 million from the public without filing a full registration statement. Which regulation provides an exemption and what is a key requirement?
- ARegulation S; must sell outside the U.S.
- BRegulation D; must only sell to accredited investors
- CRegulation A+; must provide an offering circular✓ Correct answer
- DRule 144A; must sell to QIBs
Explanation
Why C — Regulation A+; must provide an offering circular
Reg A+ allows companies to raise up to $75M in a streamlined process, requiring an offering circular. Reg D is for private placements, S is for offshore, 144A is for qualified institutional buyers.
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