SEC Regulation D (Reg D): Definition, Requirements, Advantages
Definition of 'SEC Regulation D (Reg D): Definition, Requirements, Advantages'
SEC Regulation D, also known as Reg D, is a set of rules that govern the sale of securities to investors. It is designed to protect investors from fraud and ensure that they have access to all material information about a security before they buy it.
**SEC Regulation D Requirements**
There are three main requirements that must be met in order to sell securities under Reg D:
1. The securities must be offered to a limited number of investors.
2. The investors must be accredited investors or be offered a private placement memorandum.
3. The securities must be sold at a price that is not less than the fair market value.
**SEC Regulation D Advantages**
There are a number of advantages to selling securities under Reg D, including:
* It is a less expensive and more streamlined process than registering a security with the SEC.
* It allows companies to raise capital from a wider range of investors, including accredited investors and non-accredited investors who meet certain requirements.
* It provides investors with more information about the security they are buying.
SEC Regulation D is a valuable tool for companies that want to raise capital from investors. It provides a number of advantages over traditional securities offerings, including a less expensive and more streamlined process, access to a wider range of investors, and more information for investors.
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