Who can invest in a Reg D offering?
“Reg D” Offerings
They are generally only open to accredited investors. However, technically, up to 35 non-accredited investors may participate. They simply need to show financial expertise and business acumen.
What is a Reg D 506 B offering?
Companies conducting an offering under Rule 506(b) can raise an unlimited amount of money and can sell securities to an unlimited number of accredited investors. An offering under Rule 506(b), however, is subject to the following requirements: no general solicitation or advertising to market the securities.
Is a Reg D offering a private placement?
Thus, instead of a prospectus which is part of a registration statement filed with the SEC, private placement securities are typically offered through a Private Placement Memorandum or “PPM.” Most private placements are offered under SEC Regulation D and are sometimes called “Reg. D” or “506” offerings.