Rule 506 Carries a 35-Purchaser Maximum (Excluding Accredited Investors)

question 128

True/False

Rule 506 carries a 35-purchaser maximum (excluding accredited investors).

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Definitions:

Net Cash Flow

The difference between a company’s cash inflows and outflows over a specific period, indicating its financial health.

Non-Cash Revenues

Revenues earned by a business for which no cash is received, typically recognized through bartering, trading, or other non-cash exchanges.

Break-Even Time

The period required for a business or investment to generate enough revenue to cover its initial costs, reaching a point where no gain or loss is incurred.

Time Value

The concept that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.