LAW 3111H Study Guide - Midterm Guide: Private Placement, Underwriting
Document Summary
2 broad categories: exempt securities(exemption for its whole life, exempt transaction (each and every time reols still make sure it fits within exemption. Both the seller and buyer have to be in same state. Amount of people doesn"t matter (1000 or 5) Ability for the investors to fend for themselves. Can this person take info and distill information into a useful answer. Whether or not it is a good idea to invest in company and do they have access to the information. Finance people would classify that they are sophisticated investors and they would probably have the information (prospectus & disclosures, etc) however *** there could be an intern who does not have expertise or information. Is the corporation spread out to different states, then it would be impossible if not very difficult to do intrastate offerings. Old rule : doing business out of state : where they are incorporated and where most of the revenue comes from.
