Regulation A and Regulation D are both SEC regulations that pertain to securities offerings.
Regulation A, also known as “Reg A,” is a safe harbor for smaller companies to raise capital through offerings of securities. Reg A allows companies to raise up to $75 million in a 12-month period from both accredited and non-accredited investors. Reg A offerings are typically less complex and less expensive to conduct than traditional IPOs, but they do require companies to file ongoing reports with the SEC.
Regulation D, also known as “Reg D,” provides an exemption from the registration requirements of the 1933 Securities Act for certain private offerings of securities. Rule 506 of Reg D is the most commonly used exemption and allows an unlimited amount of money to be raised, but with some restrictions, the main one being that these types of offerings can only be sold to accredited investors.
So in summary, Reg A allows companies to raise more money but with more regulatory compliance and can be sold to both accredited and non-accredited investors. Reg D is a more streamlined process that is limited to accredited investors, but allows an unlimited amount of money to be raised.
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