Regulation D (Reg D)
A Securities and Exchange Commission (SEC) regulation governing private placement exemptions. Reg D allows usually smaller companies to raise capital through the sale of equity or debt securities without having to register their securities with the SEC. Investopedia Says:
Reg D offerings are advantageous to any private company or entrepreneur because they allow an entity to obtain funding faster and to avoid the costs associated with a public offering.
Even if the transaction only involves one or two investors, the company or entrepreneur wanting to raise capital still needs to provide the proper framework and disclosure documentation; however, these requirements are significantly less than what is required for a public offering. Related Terms:
Accredited Investor
Debt Security
Exemption
Initial Public Offering - IPO
Private Placement
Regulation FD
Regulation T
Regulation U
Securities & Exchange Commission - SEC
Securities Act of 1933 |