Small issues exemption

Small issues exemption

Securities issues that involve less than $1.5 million are not required to file a registration statement with the SEC. Instead, they are governed by Regulation A, for which only a brief offering statement is needed.

Regulation A

An SEC regulation governing an issue of securities worth $5 million or less. Regulation A exempts these issues from many SEC regulations. While companies making these issues must still make filing statements, the issue's prospectus may be shorter and directors and officers have less liability for false or misleading statements. Many companies making regulation A issues are small businesses.
References in periodicals archive ?
The legislation will streamline the definition of tax exempt private activity bonds, simplify the existing arbitrage of rebate requirements, increase small issues exemption for banks deduction of interest and establish a new type of tax exempt private activity bond.
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