Capital MarketsQuestion 319 of 398
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?
a.Regulation A
b.Regulation D Rule 506(b)
c.An intrastate exemption
d.A private placement to accredited investors only
Explanation
Regulation A permits smaller public offerings using an abbreviated disclosure document called an offering circular rather than a full registration statement. It is often described as a mini-registration and, under its Tier 2, allows raising a larger amount from the general public, including non-accredited investors.
Law Reference: Securities Act of 1933Practice all 398 questions free — no signup required.
Related questions on this topic
- The period after a registration statement is filed but before it becomes effective, during which no sales may be finalized, is called the:
- 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?
- Under Regulation D, which of the following BEST describes an accredited investor?
- Securities sold in a Regulation D private placement are generally:
- Which of the following is an example of an exempt security under the Securities Act of 1933?
- A company sells its securities only to residents of the single state in which it is incorporated and does business. Which exemption may apply?
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against FINRA Securities Industry Essentials (SIE) Exam · How we review