SIE practice questionmediumRegulation S
A U.S. issuer sells unregistered securities to a foreign investor under Regulation S, who then immediately resells the securities to a U.S. buyer. This is:
- AA prohibited Regulation S resale to the U.S.✓ Correct answer
- BPermitted if the buyer is accredited
- CLegal under Regulation D
- DAcceptable for government securities only
Explanation
Why A — A prohibited Regulation S resale to the U.S.
Regulation S permits foreign sales, but imposes resale restrictions to U.S. residents. Immediate resale circumvents those restrictions, regardless of buyer's status or security type.
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