SEC Form SB-2

DEFINITION of 'SEC Form SB-2'

A filing with the Securities and Exchange Commission (SEC) required for small businesses with revenues and public market float of less than $25 million. It is used to register securities to be sold for cash. This form requires less detailed information regarding the issuer's business than SEC Form S-1 does. It allows for the omission of summary data and less detailed financial disclosure.

BREAKING DOWN 'SEC Form SB-2'

Form SB-2 is also known as the Registration Statement for Securities to be Sold to the Public by Certain Small Business Issuers, and it is filed under the Securities Exchange Act of 1933. This act, often referred to as the "truth in securities" law, requires that these registration forms are filed to disclose important information upon registration of a company's securities. This helps the SEC achieve the objectives of this act - helping investors receive information regarding securities offered and preventing fraud in the sale of the offered securities.