SEC registration is not required when a company makes a:
A)private placement of securities.
B)public offering of securities issue having a value less than $5 million and a maturity less than nine months.
C)public offering of securities having a value greater than $5 million.
D)both A and B.

Question

Quizplus · Accepted Answer

Private placements, or offerings to a limited number of accredited investors, do not require SEC registration. Additionally, public offerings of securities with a value less than $5 million and a maturity less than nine months (also known as Regulation A offerings) are exempt from SEC registration. Therefore, choices A and B are correct. However, public offerings of securities with a value greater than $5 million do require SEC registration. Therefore, choice C is incorrect.

SEC Registration Is Not Required When a Company Makes A