REG – Rule 506 stock sale

CPA Exam Forum The Forum REG Review REG – Rule 506 stock sale

This topic contains 4 replies, has 4 voices, and was last updated by  skiw97 6 years, 4 months ago.

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  • #157594

    skiw97
    Participant

    Becker questioned explained that the offering was over a 2 year period. I see that 504 and 505 have limitations for the issuance ($1m for 12 months and $5m for 12 months), is the restriction removed from 506 because there is an unlimited dollar amount on the issuance and subsequent issuances? I think I answered my own question but if someone could just confirm I would appreciate.. thanks!

    #228016

    elsie
    Participant

    pls clarify yr question again??

    #228017

    Daisycpa
    Participant

    I believe the Reg D 506 are private placements of unlimited $ amount and may exceed 12 months. These are for sophisticated investors who do investing as a business.

    #228018

    Vince
    Participant

    The 12 month and 2 year thing is two different things. The invester (buyer) has to hold it and can not resell it for at least 2 years (long term) and that is regarding reg D (rule 504, 505, 506). The 12 month thing is the amount of securities the company (issuer/seller) can issue (1 mil for 504, 5 mill for 505, and unlimited for 506 given that there are no more than 35 sophisticated unaccredited buyers). Is that what you are asking??

    #228019

    skiw97
    Participant

    got it, thanks…

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