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.<\/p>\n\n\n\n