A corporation, which does virtually all of its business in the state where it has its home offices

By Investopedia Staff AAA
Q:

A corporation, which does virtually all of its business in the state where it has its home offices, wishes to go with as little cost as possible and raise $10 million.  Which of the following would be the most likely avenue for registration?
A) Registration by Notification
B) Standby
C) Regulation “A”
D) Rule 147

A:
The correct answer is d)

Rule 147 is a rule that allows for intrastate offerings to be exempt from the requirements of full registration under the Act of ’33.  A company located in the state must make the offering.  100% of the initial purchasers must be residents of the state, and there are strict rules on resale to non-residents. Registration by notification requires that the company has already been registered with the SEC. Regulation “A” is a limited registration with the SEC limited to a maximum of $5 million.

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