The Section 4(a)(2) Offering Trap
SUMMARY When raising capital, companies can use Section 4(a)(2) or Regulation D exemptions to avoid costly public offerings. While Section 4(a)(2) offers privacy and no federal filings, most attorneys prefer Regulation D because it preempts state securities laws, provides clearer legal standards and offers stronger protection against lawsuits. Section 4(a)(2) remains useful mainly for single-investor … Read more