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Rule 506 Goes One Step Further Than Rule 505 by Allowing

question 82

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Rule 506 goes one step further than Rule 505 by allowing an issuing company to sell an unlimited number of securities to 35 investors and an unlimited number of accredited investors and relatives of issuers.


Definitions:

Real Insurance Company

A licensed entity that provides insurance products and services to individuals and businesses.

Disability Insurance

A type of insurance that provides financial support to individuals who are unable to work due to a disability.

Monthly Wages

The total amount of money earned by an employee within a month, often a fixed salary but can also include bonuses or commissions.

Key-Person Insurance

Key-person insurance is a policy taken out by a business to compensate for financial losses that would arise from the death or extended incapacity of an important member of the business.

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