Question

In Reg. A, no purchase limits on Tier 1 (up to 20 million) on Tier 2 (up to 50 million) subject to:

A) SEC approval.
B) State approval.
C) FINRA approval.
D) Underwriter's discretion.

Answer 1

In Reg. A, there are no purchase limits on Tier 1 and Tier 2, up to 20 million and 50 million respectively, but both tiers require SEC approval.

Step-by-step explanation:

Regulation A, often referred to as Reg A, is a set of rules under the Securities Act of 1933 that provides an exemption from certain registration requirements for smaller public offerings of securities. The purpose of Regulation A is to make it easier for smaller companies to raise capital by offering and selling securities to the public. Regulation A has two tiers: Tier 1 and Tier 2, each with different requirements and limitations.

In Reg. A, there are no purchase limits on Tier 1, which allows companies to raise up to 20 million dollars. Tier 2 allows companies to raise up to 50 million dollars. However, both tiers are subject to SEC approval.