IPOnet conducted the first Rule 506 offerings on the Internet in December of 1996. IPOnet also offered the first broker dealer underwritten IPO on the Internet in October of 1996.
Security offerings can be an fundamental part of raising capital for today s start up companies.
Many smaller issuers will opt for a private offering to surplus their current assets with funds from investors. Depending on the security offering, different investors will respond and can participate. Regulation D of the Securities Act of 1933 has been used as a means to offer the company s securities to investors that meet different criteria. These three exemptions have different fundamental properties and should be employed according to the characteristics and objectives of a particular offering. When attempting to efficiently propose an offering that will be beneficial to the issuer not only today but also tomorrow, the benefits of Rule 506 brilliantly overshadow the constraints of other traditional choices for exemptions.