Kitsch Niche Corporation is a noninvestment company that wants to is-sue $3 million of stock in a twelve-month period.Kitsch Niche,with less than $20 mil-lion in annual sales,qualifies as a small business issuer.Before Kitsch Niche sells the stock,it must provide investors with

Question

Quizplus · Accepted Answer

As Kitsch Niche is issuing less than $5 million in securities over a 12-month period and qualifies as a small business issuer, it can make use of the exemption provided under Regulation A. Regulation A requires the issuer to file an offering circular with the Securities and Exchange Commission (SEC) and provide it to prospective investors. Therefore, an offering circular is required in this case, making Option A the best choice. A notice of the issue may be provided as well, but it is not the primary requirement under Regulation A. Red herring prospectus and tombstone ads are not applicable as Kitsch Niche is not making a public offering through a large financial institution.

Kitsch Niche Corporation Is a Noninvestment Company That Wants to Is-Sue