SIE practice questioneasyRegulation D and Account Types
An investor wishes to participate in a private placement under Regulation D. Which statement is TRUE?
- AAll investors in private placements must be FINRA members.
- BOnly publicly traded companies may offer private placements.
- CPrivate placements are registered with the SEC.
- DThe investor must generally be an accredited investor to participate.✓ Correct answer
Explanation
Why D — The investor must generally be an accredited investor to participate.
Regulation D private placements are exempt from SEC registration and are generally limited to accredited investors. They may be offered by non-public companies, and investors do not need to be FINRA members.
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