Ask Question
21 April, 20:43

An unregistered hedge fund creates a website and uses it to promote itself to investors. Potential investors are invited to enter a password-protected area where they can get details about the fund's investment strategy and performance. Which statement is TRUE?

(A) This is prohibited under SEC rules

(B) This is permitted under SEC rules as long as the potential viewer completes and signs an accredited investor questionnaire before being given the password to enter

(C) This is permitted under SEC rules as long as the potential viewer completes and signs an arbitration agreement before being given the password to enter

(D) This is permitted without restriction

+2
Answers (1)
  1. 21 April, 23:12
    0
    Here the correct statement is B).

    Explanation:

    SEC (securities exchange commission) allows these types of private placement to be made as per the Regulation D, through the website but it is important to note that these placements can be only made to accredited investors (these are wealthy or high net worth individuals) and these investors would have to fill and sign the questionnaire given to them before they can enter in to password protected area.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “An unregistered hedge fund creates a website and uses it to promote itself to investors. Potential investors are invited to enter a ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers