An early-stage venture that is not an investment company and has written compensation agreements can structure compensation-related securities issues so they are exempt from SEC registration requirements.

Question

Quizplus · Accepted Answer

This is true. Under certain circumstances, early-stage ventures can qualify for exemptions from SEC registration requirements for compensation-related securities issues. This is outlined in Rule 701 of the Securities Act.

An Early-Stage Venture That Is Not an Investment Company and Has