Category: Regulation D
SEC Regulation D is a set of rules established by the Securities and Exchange Commission (SEC) that provides exemptions for companies to raise capital through the sale of securities without the need for full registration. This regulation is particularly beneficial for smaller companies, allowing them to offer securities to a limited number of investors, often referred to as private placements. Regulation D includes several key rules, notably Rule 504 and Rule 506, which outline the conditions under which these offerings can occur, such as limits on the amount raised and the types of investors involved. By facilitating easier access to capital, Regulation D plays a crucial role in promoting entrepreneurship and investment opportunities while still maintaining investor protections.