Regulation D exemption

The Regulation D exemption is a regulation that allows an entity to issue securities to accredited investors without filing a formal registration document with the Securities and Exchange Commission. Securities sold under the Regulation D exemption cannot be resold unless the entity files a registration document, such as the Form S-1 or Form S-3. This exemption is most useful to smaller organizations with lesser funding requirements. In addition, fundraising under this exemption can be completed much faster than via a public offering.

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Corporate Finance