Hi Can you answer the question below please In a private placement, the issuer has to avoid reaching out to a large number of potential investors to avoid the risk that the SEC declares that it is in fact a public offering anddemand that the offering gets registered with the SEC. What is the maximum number of offerees that industry practice dictates not to go over in a private placement offering?10100100010000

Answered: In a private placement, the issuer has…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Hi Can you answer the question below please

In a private placement, the issuer has to avoid reaching out to a large number of potential investors to avoid the risk that the SEC declares that it is in fact a public offering and
demand that the offering gets registered with the SEC. What is the maximum number of offerees that industry practice dictates not to go over in a private placement offering?
10
100
1000
10000

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Private placement refers to selling of shares privately to some of the pre-selected investors or offerees rather than issuing shares in the open market.

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