Regulation A
Regulation A is an exemption from the registration requirements mandated by the Securities Act, applicable to small public offerings of securities that do not exceed $5 million in any 12-month period. A company that uses the Regulation A exemption for a securities offering must still file an offering statement with the Securities and Exchange Commission. While Regulation A offerings share some characteristics with registered offerings, they have some distinct advantages over full registration. Regulation A+ is an update to Regulation A which increases to $50 million the amount entrepreneurs can raise, and eases one of the most onerous provisions, the Blue Sky registrations, which required an offering to be registered in each state in which the securities are sold.
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