Resale Restrictions
Typically, securities purchased through Reg A/D/CF are subject to at least one-year holding period, meaning investors cannot sell their securities for at least 12 months. This illiquidity can deter potential investors, making it harder for issuers to attract capital.
Issuers must ensure that investors understand these limitations and may need to monitor secondary market transactions to ensure compliance with these restrictions.
Related pages
- Regulations
- FINRA Requirements for Broker-Dealers
- educational support
- dealing with litigation risks
- investor relations and transparency
- Investor funds protection
- Managing Escrow Logistics
- Managing Investor Relations
- Non-accredited Investor
- Reg A+
- Reg A
- advertising and solicitation rules
- currency conversion and international payments
- filing and disclosure automation
- form 1-A
- global investor participation
- investment limits for non-accredited investors
- investor tracking and notifications
- market demand and pricing
- ongoing reporting
- real-time transaction processing
- regular audits and compliance
- regulatory reporting
- system uptime
- Reg CF
- Campaigns conducation
- Disclosure of Risks
- Form C-AR
- Form C
- Investment Caps
- Liquidity for Investors
- Marketing and Advertising Restrictions
- Tax Reporting
- Verification of Eligibility
- Financial Statements Audit
- Reg D
- Blue Sky Laws
- Form d
- Ongoing Reporting Obligations
- Proper Risk Disclosure
- Protecting Non-Accredited Investors
- Reg D 504
- Reg D 506 b
- Reg D 506(c)
- advanced valuation models
- complexity of alternative assets
- continuous oversight
- escrow and payment integration
- illiquid markets
- illiquidity of alternative assets
- lack of standardized valuation
- market-making challenges
- matching buyers and sellers
- multiple jurisdictional regulations
- operational complexity
- performance monitoring
- regulatory reporting requirements
- secondary market
- settlement time
- transaction reporting
- valuation of alternative assets