Offerings Exempted from Registration Under Rule 505 of Regulation D

question 18

Multiple Choice

Offerings exempted from registration under rule 505 of Regulation D may raise up to $5 million in a:

• A) 6-month period
• B) 9-month period
• C) 12-month period
• D) 18-month period
• E) 24-month period

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Definitions:

Investment

The allocation of resources, such as capital or time, in the expectation of generating an income or profit.

Certificate Of Investment

A financial document representing a deposit with a specified interest rate and maturity date, often issued by banks.

Bond

A contract between a borrower and a lender, in which the borrower agrees to pay the loan at some time in the future. Some bonds also make regular, constant payments once or twice a year.

Annual Interest Rate

The percentage increase in money owed per year, including the effect of compounding.