SIE practice questionhardRegulation D
What is the key investor qualification for purchasing under a Regulation D Rule 506(c) offering?
- AInvestor must be a U.S. resident
- BInvestor must be accredited✓ Correct answer
- CInvestor must be a broker-dealer
- DInvestor must be an insider
Explanation
Why B — Investor must be accredited
Rule 506(c) private placements require all investors to be accredited, i.e., meet certain income/net worth requirements. U.S. residency, broker-dealer status, or insider status are not sufficient.
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