Welcome to Accredited Investor Leads! Let’s jump right in, today we are going to be discussing the regulation D private placement. So what is a regulation D private placement? A regulation D private placement, also known as a private placement, is the sale of securities not registered with the Securities and Exchange Commission. For example, Regulation D would pertain to investors who are accredited, investors. These are individuals that have a minimum of one million dollars in assets or earn more than $200,000 per year. Accredited investors are considered sophisticated because they have the means to risk their own money.

regulation d private placement

This is a quick description of Regulation D Private Placement. It is important to understand the difference between a registered offering, which is what most investments are, and a private offering. A registered offering pertains to securities sold in accordance with securities law for public offer. For example, there are many companies that use Regulation D to sell their securities before they go public. The US Securities and Exchange Commission has rules for how you can be accredited. These rules are challenged by people who buy regulated securities with money they don’t have because it’s against the law to do so. So let’s talk more about Regulation D investments.

Regulation D Private Placement

Regulation D is often used to raise money for very small companies. Companies can use this type of investment to meet the minimum amount required to be considered an accredited investor. Because these are private offerings, there are very few rules or restrictions placed on the company. Rather, the SEC’s role in regulating these companies is limited to making sure that all of the information about the company being offered is accurate and that any conflicts of interest are disclosed. It’s important that you know that Regulation D securities are not registered with the Securities and Exchange Commission (SEC). This does not mean they are illegal, but it does mean they have no legal protection if investors lose their shirts.

If you have any questions about private placements, contact us today.