Homework Help is Here – Start Your Trial Now!
Business
Accounting
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? O 10 O 100 O 1000 O 10000

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? O 10 O 100 O 1000 O 10000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

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
Transcribed Image Text: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
Expert Solution
Step 1

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.

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Determination of Tax Liability
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS