https://speakerdeck.com/seclaw101 2020-03-31 12:58:20 -0400 For a company to register securities for sale, it must file a registration statement with the SEC. The registration statement must include a prospectus, which markets the stock to the public, financial reports, and additional information. Issuers can choose from a number of Securities Act registration forms, but initial offerings, used when companies first go public, are most commonly registered on Form S-1 or Form F-1. Two of the most common offering exemptions are contained in Rules 504 and 506(c) of Regulation D of the Securities Act. Rule 504 is known as Limited Crowdfunding because general solicitation and advertising may only be used in limited circumstances as discussed below. Rule 506(c) is also known as Accredited Crowdfunding because general solicitation and advertising may be used thus, appealing to a crowd. Most states have enacted rules known as blue sky laws to facilitate Rule 504 and Rule 506(c) offerings under federal Regulation D. For a company to register securities for sale, it must file a registration statement with the SEC. The registration statement must include a prospectus, which markets the stock to the public, financial reports, and additional information. Issuers can choose from a number of Securities Act registration forms, but initial offerings, used when companies first go public, are most commonly registered on Form S-1 or Form F-1. Two of the most common offering exemptions are contained in Rules 504 and 506(c) of Regulation D of the Securities Act. Rule 504 is known as Limited Crowdfunding because general solicitation and advertising may only be used in limited circumstances as discussed below. Rule 506(c) is also known as Accredited Crowdfunding because general solicitation and advertising may be used thus, appealing to a crowd. Most states have enacted rules known as blue sky laws to facilitate Rule 504 and Rule 506(c) offerings under federal Regulation D. Tue, 31 Mar 2020 00:00:00 -0400 https://speakerdeck.com/seclaw101/crowdfunding-with-rule-504-and-rule-506-c https://speakerdeck.com/seclaw101/crowdfunding-with-rule-504-and-rule-506-c In this presentation, Brenda Hamilton , a securities lawyer discusses accredited crowdfunding pursuant to Rule 506(c) of Regulation D of the Securities Act of 1933, as amended (the “Company”) which allows a company to raise unlimited funds from accredited investors without a filing with the Securities & Exchange Commission (“SEC”) if certain requirements are met. Under Rule 506(c), the company must take “reasonable steps” to verify the investors' accredited status. In these times of social distancing, Rule 506(c) provides an important benefit because companies can offer and sell their securities online using social media outlets like Twitter, Facebook and Instagram, enabling it to appeal to the “crowd” that characterizes a crowdfunding effort. In this presentation, Brenda Hamilton , a securities lawyer discusses accredited crowdfunding pursuant to Rule 506(c) of Regulation D of the Securities Act of 1933, as amended (the “Company”) which allows a company to raise unlimited funds from accredited investors without a filing with the Securities & Exchange Commission (“SEC”) if certain requirements are met. Under Rule 506(c), the company must take “reasonable steps” to verify the investors' accredited status. In these times of social distancing, Rule 506(c) provides an important benefit because companies can offer and sell their securities online using social media outlets like Twitter, Facebook and Instagram, enabling it to appeal to the “crowd” that characterizes a crowdfunding effort. Tue, 31 Mar 2020 00:00:00 -0400 https://speakerdeck.com/seclaw101/accredited-crowdfunding-with-rule-506-c https://speakerdeck.com/seclaw101/accredited-crowdfunding-with-rule-506-c