Capital MarketsQuestion 317 of 398
Which type of offering allows a company to raise capital by selling securities privately to accredited and a limited number of non-accredited investors without full SEC registration?
a.An initial public offering
b.A rights offering
c.A private placement under Regulation D
d.A follow-on public offering
Explanation
Regulation D provides exemptions from full SEC registration for private placements sold primarily to accredited investors, with limits on the number of non-accredited investors. This allows issuers to raise capital more quickly and with less disclosure than a registered public offering.
Law Reference: Securities Act of 1933Practice all 398 questions free — no signup required.
Related questions on this topic
- In a follow-on offering by an already-public company, additional new shares are sold to the public. What effect does this typically have on existing shareholders?
- An offering in which some shares are newly issued by the company and other shares are sold by existing large shareholders is called a(n):
- The period after a registration statement is filed but before it becomes effective, during which no sales may be finalized, is called the:
- Under Regulation D, which of the following BEST describes an accredited investor?
- A small company wants to raise up to $75 million from the public using a simplified, 'mini-registration' process with a formal offering circular. Which exemption is it most likely using?
- Securities sold in a Regulation D private placement are generally:
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against FINRA Securities Industry Essentials (SIE) Exam · How we review