What Is the Maximum Dollar Amount of a Securities Offering

question 24

Multiple Choice

What is the maximum dollar amount of a securities offering for it to still qualify for private placement exemption?

• A) $100,000
• B) $500,000
• C) $1,000,000
• D) $2,000,000
• E) $5,000,000

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Definitions:

Merchants

Individuals or businesses engaged in the selling of goods, services, or commodities for profit.

Reasonably Fit

A standard in commercial transactions that signifies goods provided under a contract must be of average or suitable quality for the purposes for which such goods are normally used.

Implied Warranty

A legal term for guarantees that are not expressly stated but are assumed in the sale of goods or services, ensuring basic standards of quality and functionality.

Merchantability

A legal concept referring to the implicit guarantee that a product is fit for the purposes for which it is sold.