{"id":249,"date":"2013-09-03T22:56:15","date_gmt":"2013-09-04T03:56:15","guid":{"rendered":"http:\/\/www.accreditedinvestorleads.com\/?p=249"},"modified":"2020-01-22T11:41:19","modified_gmt":"2020-01-22T15:41:19","slug":"know-about-rule-504-of-reg-d","status":"publish","type":"post","link":"https:\/\/www.accreditedinvestorleads.com\/know-about-rule-504-of-reg-d\/","title":{"rendered":"What You Need to Know About Rule 504 of Reg D"},"content":{"rendered":"

Regulation D is an exemption from the registration requirements in the Securities and Exchange Act of 1933.\u00a0 It allows companies to raise capital through a private offering without completing a full registration with the SEC and going public.\u00a0 Private offerings have been an essential component of our economy, enabling companies to raise capital for growth and operations.\u00a0 It has been so successful that private placement memorandums have raised up to four times the amount of capital raised through IPO’s.<\/p>\n

Under Reg D their are several rules: Rule 504, Rule 505, and Rule 506.\u00a0 Each one has similar requirements with different limits placed on investors and capital raised.\u00a0 Before issuing a private offering it is important for a company to look at each rule in order to determine which will meet the desired objectives.\u00a0 We have written a lot on Rule 505 and Rule 506 so people interested in learning more can see our previous posts.\u00a0 Today we would like to focus specifically on Rule 504.<\/p>\n

Rule 504\u00a0is more commonly known among the business community, in part because it is the first rule listed and many businesses don’t go further into analyzing if it is the correct rule to be under.<\/p>\n

Here is what you need to know about Rule 504 under Reg D:<\/p>\n