YOU MUST KNOW ABOUT PRIVATE PLACEMENT OFFERINGS FOR THE SECURITIES INDUSTRY ESSENTIALS (SIE) EXAM

 Thinking of taking the Securities Industry Essentials (SIE) exam? Then make sure that you study the characteristics of Private Placements and Private Offerings because you are likely to see questions about these topics on the SIE exam. How do I know this? FINRA list these topics In its Content Outline for the SIE Exam in Section 1.4, entitled Offerings.

Bob Eder in his SIE guide, Study for the Securities Industry Essentials (SIE) Exam, discusses Private Placements and Offerings in detail. Here is a sample of Bob Eder's discussion:

Rule 506

Under Rule 506 of Reg. D, there is no dollar limit on the size of the private offering. Moreover, there may not be more than 35 investors. In addition, Reg. D allows an unlimited number of accredited investors, generally those with sizeable assets or income. In a Rule 506 offering, all purchasers, accredited or non-accredited, must be knowledgeable and sophisticated investors, meaning that they are both familiar with investing and that they are also able to evaluate the risks inherent. If the issuer plans to allow only accredited investors, the issuer may make a public solicitation and even advertise the offering, but it must carefully verify that there are no unaccredited investors in the group.

Here is the link to FINRA's Content Outline for the SIE Exam. See the references to Private Placements and Offerings in FINRA's Content Outline, Section 1.4.

Study for the Securities Industry Essentials (SIE) Exam is available from Amazon in both paperback and Kindle e-book versions. Here is the link to Bob Eder's book on Amazon.

For questions about Bob Eder's Study for the Securities Industry Essentials (SIE) Exam, or questions in general about the SIE exam, or about Private Placements and Offerings, feel free to email Bob Eder at bobeder@bobeder.net.

Bob Eder received his Juris Doctor (J.D.) degree from the University of Utah, Quinney College of Law, in 2001. See Bob Eder's Author Page on Amazon.com.

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