Regulation A exemption

The Regulation A exemption is a regulation of the Securities and Exchange Commission that provides an exemption from the securities registration requirements of the Securities Act of 1933. The exemption is provided on the grounds that a smaller securities issuance does not warrant the cost and effort of completing a formal registration document (though a shorter document is still required). A particular advantage of the exemption is that the financial statements of the issuer do not have to be audited.