Each offer and sale of a security must be (a) registered with the Securities and Exchange Commission (SEC); or (b) subject to an exemption from registration under the Securities Act of 1933, as amended (the “Securities Act”). Both private and publicly traded companies raise money by registering their shares on Form S-1 or another registration statement under the Securities Act. Companies can also raise money by conducting an offering under an exemption from registration with the SEC. Rule 506(b) and Rule 506(c) are the most commonly used exemptions from SEC registration. Using Rule 506(b) or 506(c), the issue can establish the shareholder base needed for (a).
The following chart summarizes the key metrics for the exemptions from registration under SEC Regulation D Rule 506(b) and Regulation D Rule 506(c).
Related Articles:
Section 4(a)(2) and Rule 506(b) Exempt Offerings
Rule 506(c) Offerings
Private Placement Memorandum – Regulation D
Regulation D – the Bad Actor Rule
Regulation A White Paper
Blue Sky Laws – Regulation A Offerings
Regulation Crowdfunding
Rule 504
To speak with a Securities Attorney about raising capital for your company using SEC Regulation D Rule 506(b) or Regulation D Rule 506(c), please contact Brenda Hamilton at 200 E Palmetto Rd, Suite 103, Boca Raton, Florida, (561) 416-8956, or by email at info@securitieslawyer101.com.
This securities law blog post is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as and does not constitute legal advice on any specific matter, nor does this message create an attorney-client relationship. Please note that the prior results discussed herein do not guarantee similar outcomes.
Hamilton & Associates | Securities Attorneys
Brenda Hamilton, Securities Attorney
200 E Palmetto Rd, Suite 103
Boca Raton, Florida 33432
Telephone: (561) 416-8956
Facsimile: (561) 416-2855
www.SecuritiesLawyer101.com
