Exempt Transactions and Securities

Question 1

Which securities are exempt from SEC registration rules?

Answer 1

• Commercial notes maturing within 9 months
• Bank and Government Securities
• Charitable Organization Securities
• Regulated Savings and Loans
• Federally Regulated Common Carriers

Question 2

Detail provisions of Regulation D Rule 504.

Answer 2

• Limit of $1 million in a 12 month period
• General solicitation and advertising are not allowed
• May be sold to anyone
• No information requirements

Question 3

Detail provisions of Regulation D Rule 505.

Answer 3

• Limit of $5 million in a 12 month period
• Cannot use general solicitation or advertising unless you only sell to AI’s
• No more than 35 unaccredited investors
• No information requirements

Question 4

Detail provisions of Regulation D Rule 506.

Answer 4

• Unlimited amount
• Cannot use general advertising or solicitation unless sell only to AI’s
• No more than 35 unaccredited investors and they all must be sophisticated or act through sophisticated purchaser representatives