Although securities sold under a private placement exemption are exempt from registration, the law requires that investors be given a ____, which is similar to a prospectus.

Question

Quizplus · Accepted Answer

A private-placement memorandum is a document that provides information about the securities being offered, the issuer, and any risks associated with the investment. It serves as a disclosure document for potential investors and is similar to a prospectus, although it is not required to meet the same regulatory standards as a prospectus.

Although Securities Sold Under a Private Placement Exemption Are Exempt