Which of the following statements is true
A) Rule 505 permits the sale of $10 million of unregistered securities in the private offering in any 12-month period.
B) Rule 504 and 505 permit no general advertising or solicitation through public media.
C) Rule 506 provides the first exemption to a company seeking to raise a small amount of capital from numerous investors.
D) The entrepreneur issuing the private offering is spared the burden of proving that the exemptions granted have been met.

Question

Quizplus · Accepted Answer

Rule 504 and 505, part of Regulation D under the Securities Act of 1933, indeed restrict general advertising or solicitation in the offering of securities to maintain the private nature of the transaction.

Which of the Following Statements Is True