Rule 147


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.


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.

  1. Securities And Exchange Commission ...

    A government commission created by Congress to regulate the securities ...
  2. Rule 144

    A Securities and Exchange Commission rule that sets the conditions ...
  3. Registered Security

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

    A market that issues new securities on an exchange. Companies, ...
  5. Securities Act Of 1933

    A federal piece of legislation enacted as a result of the market ...
  6. Secondary Offering

    1. The issuance of new stock for public sale from a company that ...
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