While Section 4(2)does Not Limit the Dollar Amount of an Offering,the

question 72

Multiple Choice

While Section 4(2) does not limit the dollar amount of an offering,the interpretation of the law has stipulated that:

• A)the investors must be sophisticated
• B)the number of investors must be limited to 35
• C)the funds must be raised within a 12-month period
• D)the offering must be extended to the public,and not only investors
• Who have a relationship with the issuer

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Definitions:

Asset

An asset is a resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide future benefit.

Invested Cash

Funds that are placed into a business by its owners or shareholders with the expectation of generating profits or income.

Capital

The financial resources or assets owned by an individual or business, often used to generate income or produce goods and services.

Withdrawals

Funds taken out of a business by the owners for personal use.