Series 7 - General Securities Representative Exam

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An investor bought stock in a Regulation D Private Placement. Which one of the following is true?

Shares cannot be sold during the 2 year lock-up period
A
The securities can be sold after 6 months of purchase
B
The maximum capital raise during any 12 month period is 5 million dollars
C
An unlimited number of investors are allowed via crowdfunding
D

Explanations

The JOBS act loosened up the restrictions on Reg D offers. An unlimited number of unaccredited investors are allowed via crowdfunding. Securities must be held for 1 year after purchase prior to sale. The total capital raise is 1 million during any 12 month period. Answer is ( D )

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