It permits companies greater latitude to determine the price, pick the team and control the costs, and allows them to create a direct relationship with shareholders. Stock sold under a SCOR can be freely traded in the secondary market, making the investment more liquid and thereby attractive to investors. This document is not legal advice, and is intended solely for information and educational purposes. If you are contemplating a private placement, or any legal transaction, you should consult an attorney who can provide you with the advice that you need, for your specific circumstances. Securities law, and corporate finance, is not the area for novices to play.
Incorrect documentation can have serious ramifications for all involved parties.
Private offerings are not the subject of a registration statement filed with the SEC under the 1933 Act. Regulation D, promulgated in 1982, sets forth certain guidelines for compliance with the Private Offering Exemption. Persons claiming the exemption from the 1933 Act carry the burden of proving that its activities came within that exemption. Regulation D Regulation D is a series of six rules, Rules 501-506, establishing three transactional exemptions from the registration requirements of the 1933 Act. Rules 501-503 set forth definitions, terms and conditions that apply generally throughout the Regulation.