Capital MarketsQuestion 322 of 398
A company sells its securities only to residents of the single state in which it is incorporated and does business. Which exemption may apply?
a.Regulation A Tier 2
b.Regulation D Rule 504
c.The private placement exemption
d.The intrastate offering exemption
Explanation
The intrastate offering exemption applies when an issuer conducts business and offers securities solely within one state to residents of that state. Because the offering does not cross state lines, it can be exempt from federal registration, though state (blue-sky) rules still apply.
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