Northern Company is a small issuer who wishes to solicit investors to buy its securities during the pre-filing period. As the advertising budget of the company is not large, Northern has decided to advertise during the pre-filing period by using a Website. This solicitation of shares is:

Question

Quizplus · Accepted Answer

Rule 505 and Rule 506 of Regulation D restricts the ability of issuers to use certain methods of solicitation during the pre-filing period, including advertising through a website. Therefore, Northern Company's solicitation through a website during the pre-filing period would violate these regulations.

Northern Company Is a Small Issuer Who Wishes to Solicit