What is the effect of the aggregation rules on each of these offerings?
The question is related to security regulations Regulation D
An issuer has not offered or sold securities in the preceding 12 months. On January 1, it begins a rule 505 offering that remains open until June 1; it sells $4.5 million in securities in the offering. On May 1 of the same year, the issuer begins a rule 504 offering; in the second offering, which is open for two months, the issuer sells $750,000 in securities. What is the effect of the aggregation rules on each of these offerings?
Securities Exchange Commission: Rules 504 and 505
The rules set forth by the securities exchange commission seek to ensure fairness and proper practices for investors in the securities exchange market. In particular, different accredited investors and the issuers of securities ought to conform to the laws set forth by the commission to guarantee that the trade in securities is fair enough to the different parties involved and is within the necessary legal requirements for such practices (Pope, 2010). Some of the most