Skip to content

Pass Rate

Over 25 years and 400,000 exams

Assured Success

If you use our practice exams

Chat & Call Support

We are with you every step of the way

Definition of Regulation A

The JOBS Act of 2012 increased the amount that may be raised under a Regulation A offering to $50 million. This exemption from full registration allows smaller companies access to the capital markets without having to go through the expense of filing a full registration statement with the SEC. The issuer will instead file an abbreviated notice of sale or offering circular known as a 1-A with the SEC and purchasers of the issue will be given a copy of the offering circular rather than a final prospectus.

Applying "Regulation A" to Securities Exams:

Under a regulation A offering, purchasers of the issue must have the preliminary or final offering circular mailed to them 48 hours before mailing the confirmation. The same 20-day cooling-off period also applies to Regulation A offerings The JOBS Act further refined Regulation A into two tiers, with Regulation A now sometimes being referred to as Regulation A plus. Tier 1 allows issuers to raise up to $20 million. Of this $20 million no more than $6 million may be offered by selling shareholders. Tier 2 allows issuers to raise up to $75 million of which no more than $22.5 million may be offered by selling shareholders. Be sure you have a good understanding of the rules of Regulation for you exam. Pass your exam or your money back with our greenlight pass guarantee.

Good Luck On Your Exam!

The Securities Institute of America, Inc.

Preparing for an Exam?

Receive 15% off all your Securities Exam Prep materials