Capital MarketsQuestion 320 of 398
Securities sold in a Regulation D private placement are generally:
a.Freely tradable in the public market immediately
b.Restricted securities that cannot be freely resold without meeting holding-period or registration requirements
c.Guaranteed by the SEC against loss
d.Exempt from all antifraud provisions
Explanation
Securities acquired in a private placement are restricted and cannot be freely resold to the public until they satisfy holding-period requirements or are registered. Even though registration is exempt, the antifraud provisions of federal securities law still apply.
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