The SEC Allows for a Private Placement Exemption Because

question 34

Multiple Choice

The SEC allows for a private placement exemption because:

• A) registration of "blue chip" securities is not necessary
• B) small investors have insufficient information about the background of such offerings, so they need additional protection
• C) small issuers need a break in the costs of the process to be able to compete effectively with large securities' issuers
• D) purchasers of these securities are sophisticated and more able to protect themselves when purchasing unregistered securities
• E) issuers need greater flexibility when dealing with large numbers of small investors

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