rule of conduct , rule 505
This is the rule under the regulation D which exempts few companies offering their shares to public without the formality of registration with the Securities and Exchange Commission (SEC).
The rule has the following qualifications:
No.1) the company can’t offer more than $5 million within a span of 12-month.
No.2) there may be limitless accredited investors and 35 persons.
No.3) the securities are restricted for further selling and it must be informed to shareholders.
No.4) Advertisement is not permitted in such offering shares.
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