Since the JOBS Act introduced Rule 506(c) under Title II, issuers gained the ability to attract new investors through general public solicitation. However, this new pool of investors must still meet accredited investor criteria to invest in these 506(c) offerings....
Money and Finance
Methods to Verify Investors for Accredited Status
Verifying investors for accredited status is a key step for companies raising capital through private securities offerings. Ensuring that investors meet the accredited criteria protects both the investor and the issuer, facilitates compliance with regulatory...
Qualified Client vs. Qualified Purchaser
Private market investing usually requires investors to qualify in one of three categories of investors or purchasers. These are 1.) Accredited Investor, 2. Qualified Purchaser, or 3.) Qualified Client. These designations are designed to help protect investors from the...
Choosing the Right Rule 506 Exemption for Real Estate Investing – a or b?
Rule 506 of Regulation D involves the selling of securities without the need to register those securities with the U.S. Securities and Exchange Commission (SEC). Going public is not that easy for the majority of real estate investors. The exemptions available under...