A:

A. regulates public resale of privately placed securities.

B.
regulates private placement of unregistered securities.



C. defines qualified institutional buyers.



D. exempts small issuers from registration requirements.



Correct Answer: A.

"B" and "C" refer to Rule 144A, while "D" refers to Reg A and Reg D.



RELATED FAQS
  1. What is required to become an accredited investor in a private placement?

    Learn how the SEC defines accredited investors, and understand exceptions to the requirements for an accredited investor ... Read Answer >>
  2. A corporation, which does virtually all of its business in the state where it has ...

    The correct answer is d) Rule 147 is a rule that allows for intrastate offerings to be exempt from the requirements of full ... Read Answer >>
  3. What are the disclosure requirements for a private placement?

    Learn about the SEC rules for disclosure requirements in private placement offerings, and understand what type of information ... Read Answer >>
  4. What are some advantages of raising capital through private placement?

    Understand how a business can raise capital through private placement and the benefits business owners receive through this ... Read Answer >>
  5. Compute the offering price for a mutual fund with NAV of $1,200,000,000, an 8% front-end ...

    A. $1,304.35B. $1,200.00C. $1,196.35D. $1,296.00 Correct answer: A"B" is the bid price, not the offering price; "C" ... Read Answer >>
  6. What factors might make a private placement a risky investment?

    Learn about purchasing securities through a private placement investment, and understand the risk factors associated with ... Read Answer >>
Related Articles
  1. Markets

    Understanding Rule 144A

    Rule 144A is an SEC rule that changes the two-year holding period requirement on privately placed securities.
  2. Markets

    Understanding Private Placement

    Private placement refers to offering and selling shares in a company to a small group of sophisticated buyers.
  3. Markets

    Understanding Regulation T

    Regulation T governs customer cash accounts and the amount of credit that brokerage firms and dealers may extend to customers to buy securities.
  4. Markets

    Reg AC: What Does It Mean To Investors?

    In 2003, the SEC issued a new regulation meant to hold analysts more accountable for their reports. Find out what it means.
  5. Investing

    How A Company Files With The SEC

    Filing with the SEC is not as complicated as you might thing -- just be meticulous about following the steps.
  6. Investing

    What is a Private Company?

    A private company is any corporation that does not have shares publicly traded in the equity markets.
  7. Managing Wealth

    How To Invest In Private Companies

    It can be tough to invest in a company that doesn't trade on an exchange, but there are also several advantages.
  8. Markets

    Analyzing GE's Preferred Stock (GE)

    Learn why General Electric Company's new Series D Perpetual Preferred stock is an excellent choice for investors desiring a safe and steady income stream.
  9. Investing

    Advantages of Public Vs. Private Companies

    A privately held company is owned by its founder, management or a group of private investors.
  10. Markets

    Distinguishing a Qualified Institutional Buyer

    A qualified institutional buyer is a company that falls within the SEC’s category for accredited investors.
RELATED TERMS
  1. Regulation D - Reg D

    A Securities and Exchange Commission (SEC) regulation governing ...
  2. SEC Form D

    A filing with the Securities and Exchange Commission (SEC) required ...
  3. Placement

    The sale of securities to a small number of private investors ...
  4. Private Placement

    The sale of securities to a relatively small number of select ...
  5. Regulation A

    An exemption from the registration requirements mandated by the ...
  6. Unregistered Shares

    Investopedia explains: Unregistered shares are securities that ...
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center