Regulation A and Regulation S are both securities regulations issued by the Securities and Exchange Commission (SEC) in the United States. They both relate to the offering and sale of securities, but they have some key differences:
- Regulation A is an exemption from the registration requirements of the Securities Act of 1933, which means that companies can raise money from the public without having to register their securities with the SEC. Regulation A is sometimes referred to as “mini-IPO” because it allows companies to raise up to $75 million in a 12-month period, but with less regulatory requirements and costs than a traditional IPO.
- Regulation S, on the other hand, is an exemption from the registration requirements of the Securities Act of 1933 that applies to offerings made outside the United States to non-U.S. persons (i.e., people or entities that are not residents of the U.S.). Regulation S allows companies to offer and sell securities to non-U.S. investors without registering the securities with the SEC. However, companies must still comply with other securities laws and regulations of the countries in which the securities are being offered and sold.
In summary, Regulation A generally is for companies who want to raise funds from the general public within the US and Regulation S is mainly for companies who want to raise funds from non-U.S persons or entities outside of the country.
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