Which of the following is true of a Regulation A offering?

Question

Quizplus · Accepted Answer

A Regulation A offering mandates that an offering circular be provided to investors prior to their purchase of securities. This offering is also known as a mini-public offering and benefits small and medium-sized enterprises by allowing them to raise capital without the rigors and expenses of a traditional IPO. It is a less costly and expedited form of registration, as it offers limited exemptions from the strict disclosure requirements of the SEC. Additionally, there are restrictions on the amount an issuer can raise in a Regulation A offering, with Tier 1 offerings capped at $20 million and Tier 2 offerings capped at $50 million.

Which of the Following Is True of a Regulation a Offering