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SIE: Capital Markets & Offerings
SIE practice questionhardRegulation S

Under Regulation S, which statement is true regarding the sale of securities?

  1. AThey are subject to Reg T margin requirements at issuance
  2. BThey must be offered only to accredited investors in the U.S.
  3. CThey can be offered to non-U.S. residents without SEC registration✓ Correct answer
  4. DThey can be offered in the U.S. without restrictions
Explanation

Why CThey can be offered to non-U.S. residents without SEC registration

Regulation S allows U.S. issuers to offer securities outside the U.S. to non-U.S. residents without SEC registration. Reg D covers accredited investors. Margin rules are unrelated. Unrestricted U.S. offerings require registration.

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