Regulation 505 - Securities Exemption

The video tutorial explains the Regulation D exemptions, focusing on a rule-based exemption similar to Rule 504 but with key differences. It covers transactional exemptions, issuance limits, and investor limitations, distinguishing between accredited and non-accredited investors. The tutorial also discusses the prohibition of general solicitation and the necessity of complying with state laws. Disclosure requirements for non-accredited investors are highlighted, emphasizing the sophistication of accredited investors.

What is the maximum dollar value allowed for issuances under this Regulation D exemption?

• $10,000,000

• $5,000,000

• $1,000,000

• $500,000

How many non-accredited investors are allowed under this exemption?

• Unlimited

• 10

• 50

• 35

Which type of investors can be unlimited in number under this exemption?

• Non-accredited investors

• Accredited investors

• Foreign investors

• Institutional investors

Is general solicitation allowed under this Regulation D exemption?

• No, it is not allowed

• Yes, but only with state approval

• Yes, but only for accredited investors

• Yes, with no restrictions

Who must receive the private placement memorandum under this exemption?

• Only non-accredited investors

• No investors

• Only accredited investors

• All investors