Reg D 506 b
Regulation D is a set of SEC rules that provides exemptions from the registration requirements typically necessary when companies offer or sell securities.
Rule 506(b)
- Unlimited Capital Raise: Allows companies to raise an unlimited amount of capital.
- Investor Limits: Up to 35 non-accredited investors and an unlimited number of accredited investors.
- General Solicitation: Prohibited; companies cannot advertise or broadly market the offering.
- Information Requirements: Companies must provide non-accredited investors with disclosure documents similar to those used in registered offerings.