thesame2
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Joined: 26 Apr 2009
Location: United States
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| Posted: 11 Jul 2009 at 15:48 | IP Logged
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1. Rule 505:rule 505 permits nonpublic and public companies to offer, without fulfilling the section 5( 1933 Act) registration requirements, up to 5 million in a 12 months period from an unlimited number of accredited purchasers and 35 nonaccredited investors.
2. Rule 506 permits nonpublic and public companies to raise, without full section 3 (1933 Act) registration, an unlimited amount of money from an unlimited number of accredited purchasers and 35 nonaccredited investors.
My question is: based on my understanding, the only difference between 505 and 506 is the amount and time, when the Rule 505 applies to this transaction, rule 506 applies to it.
So, why should we list Rule 505 separately, as it's already been included in rule 506?
or to say, is there only transaction that Rule 506 doesn't apply while rule 505 do?
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Topic: exempt transactions- rule 505 & 506
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