July 25, 2019

Differences Between Regulation A and D? | Private Money Minute


"This week on the Private Money Minute, we're gonna talk about the difference between Regulation D and Regulation A. And, we're gonna do that right now. Under Regulation D, we have an exemption from securities laws so long as we make the proper disclosures to our investors and solicit investors in a proper manner, we don't have to get permission from the Securities Exchange Commission to sell securities. Generally speaking, the rule that is used under Regulation D is Rule 506. And under Rule 506, we have B and C. We're gonna talk about the differences between B and C in another video. Under Regulation A, it's also called a mini IPO, or a mini initial public offering. In this situation, you need to go get permission from the Securities Commission prior to selling securities. It's called a qualification statement. Once you get qualified by the Securities Exchange Commission, you can go out and sell securities to the public up to 50 million dollars and from any type of investor. I'm Jillian Sidoti, and this is the Private Money Minute".

Tune in to another Private Money Minute Episode where Jillian Sidoti gives a side by side comparison of 506(b) and 506(c) of Regulation D by clicking here.

For another Private Money Minute that answers, "what's a security?"  click here.

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