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
Regulation D Rule 506(b) permits sales to an unlimited number of accredited investors and up to 35 non-accredited investors. It is an exemption from SEC registration and is often used by private companies.
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