Under what type of securities offering must the issuer determine if the investor is an accredited,sophisticated,or unaccredited investor?

Question

Quizplus · Accepted Answer

In a Regulation D offering, the issuer can raise funds from accredited investors, sophisticated investors, and a limited number of unaccredited investors. To do so, the issuer must determine the investor's status as accredited, sophisticated, or unaccredited, and provide appropriate disclosures based on that status. This is not required in a Regulation A offering or a public offering, and it may or may not be required in an interstate offering, depending on the specific state laws involved.

Under What Type of Securities Offering Must the Issuer Determine