Rule 506
Rule 506 of Regulation D is considered a "safe harbor" for the private offering exemption of Section 4(2) of the Securities Act of 1933. Companies using the Rule 506 exemption can raise an unlimited amount of money if they meet certain exemptions. No more than 35 non-accredited investors can be involved, and all must be sophisticated. Sellers are restricted from general solicitation and advertising of the sale.
Learn More About Rule 506
For more information on this topic, try one of the following options:
- View other documents that reference Rule 506.
- Browse The Encyclopedia of Private Equity and Venture Capital.
- Take an online seminar to learn more about this and other topics.