Rule 147

AAA

DEFINITION of 'Rule 147'

A rule that can be used by a company to raise funds without actually registering with the Securities and Exchange Commission (SEC). This rule usually only applies to small companies that wish to raise a small amount of money without incurring the expensive fees associated with registering with the SEC.

INVESTOPEDIA EXPLAINS 'Rule 147'

More specifically, this rule applies to Section 3(a)11 of the Securities Act of 1933, or the intrastate offering exemption. To qualify for this exemption, the company must meet requirements such as:

- The company must be incorporated in the state in which it is offering the securities.
- The company must carry out a significant portion of its business in that state, which is defined as at least 80% of its operations.
- The company must only sell the securities to individuals residing in the state of incorporation.

RELATED TERMS
  1. Initial Public Offering - IPO

    The first sale of stock by a private company to the public. IPOs ...
  2. Registered Security

    1. The name given to securities whereby ownership is registered ...
  3. Primary Market

    A market that issues new securities on an exchange. Companies, ...
  4. Securities And Exchange Commission ...

    A government commission created by Congress to regulate the securities ...
  5. Secondary Offering

    1. The issuance of new stock for public sale from a company that ...
  6. Securities Act Of 1933

    A federal piece of legislation enacted as a result of the market ...
Related Articles
  1. How does FINRA differ from the SEC?
    Investing

    How does FINRA differ from the SEC?

  2. Reg AC: What Does It Mean To Investors?
    Personal Finance

    Reg AC: What Does It Mean To Investors?

  3. Policing The Securities Market: An Overview ...
    Investing Basics

    Policing The Securities Market: An Overview ...

  4. How to Register Your Trademark
    Investing

    How to Register Your Trademark

Hot Definitions
  1. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  4. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  5. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  6. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
Trading Center