SEC registration is not required for securities that are sold through a private placement. However, securities sold through private placement are subject to certain restrictions and must be sold only to accredited investors or a limited number of non-accredited investors who meet certain qualifications.

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SEC Registration Is

Question 14

Multiple Choice

SEC registration is

A) required for all securities.
B) required if less than $1.5 million in securities are issued per year.
C) not required for securities that are sold through a private placement.
D) required if the securities mature in less than one year.
E) not required if securities are underwritten by a reputable investment bank.

Correct Answer: