506x

: Issuers must take "reasonable steps" to verify an investor’s status, such as reviewing tax returns or bank statements, rather than just relying on the investor's word. Comparison at a Glance Rule 506(b) Rule 506(c) Public Advertising Prohibited Accredited Investors Non-Accredited Investors Up to 35 (must be sophisticated) None Allowed Verification Method "Reasonable Belief" "Reasonable Steps to Verify"

: Unlike 506(b), companies can use their website, social media, or other public advertisements to attract investors. : Issuers must take "reasonable steps" to verify

: Companies can sell to an unlimited number of Accredited Investors and up to 35 "sophisticated" non-accredited investors. The most helpful articles on this topic often

The most helpful articles on this topic often compare its two primary "safe harbors": and Rule 506(c) . Rule 506(b): The Private Placement Standard companies can use their website

: Issuers are strictly prohibited from using public advertising or "general solicitation" to market the deal.