Rule 505
Rule 505 of Regulation D is an exemption for limited offers and sales of securities not exceeding $5,000,000. Company can raise up to $5 million in a 12-month period. Security sales can be made to an unlimited number of accredited investor plus 35 additional investors. Disclosure documents, i.e. a private placement memorandum, must be delivered to all non-accredited investors. If dealing with accredited investors, the number of these is unlimited, but there is no advertising allowed.
Learn More About Rule 505
For more information on this topic, try one of the following options:
- View other documents that reference Rule 505.
- Browse The Encyclopedia of Private Equity and Venture Capital.
- Take an online seminar to learn more about this and other topics.