SIE Exam Question 693: Answer and Explanation

Question: 693

According to SEC Rule 506(b), private placements may be sold to how many accredited and non-accredited investors?

• A. An unlimited number of accredited investors and up to 35 non-accredited investors.
• B. An unlimited number of accredited investors and up to 100 non-accredited investors.
• C. A total of 35 accredited and non-accredited investors.
• D. A total of 100 investors, of which 35 can be non-accredited.

Correct Answer: A

Explanation:

According to SEC Rule 506(b), private placements may be sold to an unlimited number of accredited investors and up to 35 non-accredited investors.