Rule 504 of Regulation D Limits the Total Number of Investors

question 17

Multiple Choice

Rule 504 of Regulation D limits the total number of investors to:

• A)35
• B)100
• C)35 unaccredited investors and any number of accredited investors
• D)there is no limit on the number of accredited or unaccredited
• Investors

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Definitions:

Price Takers

Market participants who accept the prevailing prices in the market for their products or services because they have no power to influence those prices.

Holding Period

The amount of time an investment is held by an investor before being sold.

Risk-Free Rate

The theoretical rate of return of an investment with zero risk, often represented by the yield on government bonds like U.S. Treasury notes.

Expected Rate

The rate of return anticipated on an investment or asset based on historical data or specified models.