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Eastern Company Wants to Make an Offering of Securities Exempt

Question 51

Multiple Choice

Eastern Company wants to make an offering of securities exempt from registration under Rule 504 of the Securities Act of 1933.Which of the following is a requirement of Rule 504?


A) Eastern may sell to no more than 35 unaccredited purchasers.
B) Eastern must sell only to investors who are able to protect themselves by making informed investment decisions.
C) Eastern must be a nonpublic issuer under the Securities Exchange Act.
D) Eastern may not make any general solicitations of investors.

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