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

Question

Quizplus · Accepted Answer

A private-placement memorandum is a document provided to potential investors in a private placement offering. It contains information similar to a prospectus, including information on the issuer, the security being offered, the risks involved, and any other information required to make an informed investment decision. While it is not required to be filed with the SEC, it is required to be provided to potential investors to ensure they have enough information to make an informed decision.

Although Securities Sold Under a Private Placement Exemption Are Exempt