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4 March, 05:47

Hamilton Corp. is making a $4.5mn securities offering under Rule 505 of Regulation D of the Securities Act of 1933. Under this regulation, Hamilton is

A. Required to provide full financial information to accredited investors only.

B. Allowed to make the offering through a general solicitation.

C. Limited to selling to no more than 35 non-accredited investors.

D. Allowed to sell to an unlimited number of investors, both accredited and non-accredited.

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  1. 4 March, 08:52
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    Hamilton is Limited to selling to no more than 35 non-accredited investors.

    Explanation:

    To qualify for this exemption, no more than 35 non-accredited investors may be involved.

    There is no limit on the number of accredited investors who may be involved.

    A non-accredited private investor is one with a net worth of under $1 million (including the spouse) who earning about $200.000 annually ($300.000 with the spouse) in the last two years. Individuals who do not fulfill the net interest criteria of a accredited investor under the Securities & Exchange Board Regulation D.

    An comprehensive disclosure statement in nearly as great depth as is appropriate for an originally approved public offering by the Securities and Exchange Commission must be issued to each non-accredited investor.
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