Describe the Exemptions from the Registration Process Under the Securities

Question

Examlex · Accepted Answer

The Answer is The exemptions from the registration process under the Securities Act of 1933 include:
a. Private placement: Transactions by an issuing company not involving any public offering. Usually, the transaction involves sophisticated investors with enough knowledge to evaluate information given them (e.g., stock option plans for top-level management).
b. Intrastate offering: Any security or part of an offering offered or sold to persons resident within a single state or territory.
c. Small business: Section 3(b) of the 1933 Act allows the SEC to exempt offerings not exceeding $5 million. Regulations A and D promulgated by the SEC define the type of investors and the amount of securities that are exempt within a certain time period.
d. Other offering exemptions: By virtue of the 1933 Act, exemptions are allowed for transactions by any person other than an issuer, underwriter, or dealer. Also, government securities (federal, state, or municipal bonds) are exempt. Also exempt are securities issued by banks, charitable organizations, and savings and loans institutions.

Describe the Exemptions from the Registration Process Under the Securities

Essay

Correct Answer:
Verified

Describe the Exemptions from the Registration Process Under the Securities

Essay

Correct Answer:VerifiedShow Answer

Correct Answer:
Verified