Posts for Money and Finance Category
General Solicitation and Raising Capital

General Solicitation and Raising Capital

General solicitation is the process of publicly raising capital. There is a prohibition against general solicitation for marketing securities under Rule 506(b) of Regulation D. The SEC takes instances of general solicitation that are potentially outside of the proper process on a case-by-case basis.

Rule 506(c) and General Solicitation
Rule 506(c) has changed the process of conducting private placements. It permits issuers of securities to use general solicitation and advertising as long as they adhere to the Rule’s requirements. Although the requirements are strict, there are advantages to the issuer that utilizes Rule 506(c). It...

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The Two Exemptions Available for Companies Under SEC Rule 506

The Two Exemptions Available for Companies Under SEC Rule 506

The Jumpstart Our Business Startups (JOBS) Act of 2012 lifted a ban on the public solicitation of private investments that had been in place...

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What JOBS Act Accredited Investors Need to Understand About the JOBS Act

What JOBS Act Accredited Investors Need to Understand About the JOBS Act

Over recent years, crowdfunding has turned into a useful tool for entrepreneurs and businesses to obtain needed capital funding. However, tight securities rules often...

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