Fail to Comply with Securities Exemption - Explained

The video tutorial explains the rights of a purchaser under Section 12 to rescind a securities purchase and recover damages. It discusses the concept of selling a put, where the issuer may be forced to repurchase securities. Protections for issuers who deviate from rule-based exemptions are outlined, focusing on minor procedural deviations. The video also covers defenses available to issuers against actions by private investors or the SEC for failing to register securities.

What is the significance of showing that an accredited investor was the purchaser in relation to rule-based exemptions?

What conditions must be met for an issuer to defend against an action by a private investor?