The SEC Allows for a Private Placement Exemption Because

The SEC allows for a private placement exemption because:

A) registration of "blue chip" securities is not necessary
B) small investors have insufficient information about the background of such offerings, so they need additional protection
C) small issuers need a break in the costs of the process to be able to compete effectively with large securities' issuers
D) purchasers of these securities are sophisticated and more able to protect themselves when purchasing unregistered securities
E) issuers need greater flexibility when dealing with large numbers of small investors