Tag: Regulation D

1. Regulation D is a regulation that governs the types of investments that are exempt from SEC registration requirements

2. The investment must be either:

a) A security issued by an individual, corporation, or partnership in which all the securities are held by five or fewer persons and there is no advertising to sell those securities; OR

b) A security issued by an individual, corporation, or partnership where all the purchasers have accredited investors (i.e., they have a net worth of at least $1 million exclusives of home equity), and there is no advertising to sell those securities; OR

c) An unregistered offer and sale of securities consisting solely of “restricted” rights for existing shareholders under certain circumstances

3. There are two types of restricted stock: Incentive Stock Options (ISOs), which may qualify as qualified employee stock options, and Nonqualified Stock Options (NSOs). ISOs can only be granted to employees who own more than 10% interest in the company’s stock while NSOS can be granted to any person

This is from the SEC’s website. Sept. 24, 2014 The SEC’s Office of Investor Education and Advocacy is issuing this Investor Bulletin to educate investors about investing in unregistered securities offerings, or private placements, under Regulation D of the Securities Act.  What is a private placement? A securities offering exempt from registration with the SEC…