SIE practice questionmediumReg D - Private Offerings
Which of the following must be true for a securities offering to qualify for exemption under Regulation D Rule 506(b)?
- AThe offering must be registered with the SEC
- BThe offering must not exceed $20 million in any 12-month period
- CSales may be made to an unlimited number of accredited investors and up to 35 non-accredited investors✓ Correct answer
- DOnly publicly traded companies may use this exemption
Explanation
Why C — Sales may be made to an unlimited number of accredited investors and up to 35 non-accredited investors
Reg D Rule 506(b) allows selling to unlimited accredited and up to 35 non-accredited investors. Dollar limits (B) relate to Regulation A+. Registration (C) is not required, and private companies (D) often use this rule.
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