MegaCorp wishes to sell $25 million of securities.The only investors will be 20 institutional buyers.Which of the following applies to this offering?

Question

Quizplus · Accepted Answer

Rule 506 of Regulation D of the 1933 Act applies to offerings that are exempt from registration requirements and allow for an unlimited number of accredited investors as well as up to 35 non-accredited investors. This option is the most appropriate for MegaCorp's $25 million offering to 20 institutional buyers. Rule 504 and Rule 505 have lower offering limits and different requirements, and none of the options for registration apply to exempt offerings.

MegaCorp Wishes to Sell $25 Million of Securities