[Lindrobe]

Has anyone else noticed that Wiley’s MCQs regarding regulation D are completely a mess? For example, this MCW reads:

Harp Corp. is offering to issue $450,000 of its securities pursuant to Regulation D of the Securities Act of 1933. Harp is not required to deliver a disclosure document in the states where the offering is being conducted. The exemption for small issues of $1,000,000 or less (Rule 504) under Regulation D

a. Requires that the issuer be subject to the reporting requirements of the Securities Exchange Act of 1934.

b. Does not require that any specific information be furnished to investors.

c. Permits the use of general solicitation.

d. Requires that each investor be a sophisticated investor or be represented by a purchaser representative.

The Wiley correct answer is (b), but when you click on the “See Reference” button, it specifically states that “General offering and solicitations are permitted under Rule 504.” Am I missing something here or is Wiley just bad?

FAR 12/3/14, 87
AUD 2/3/14, 90
BEC 4/1/14, 88
REG 5/27/14, 94

Licensed CPA, Indiana

"Successful people do things that unsuccessful people don't want to do"

[Lindrobe]

I just ran across another MCQ that says that “No General Offering or Solicitation is permitted” for Rule 506, but the Ninja flashcards say that “General Solicitation and Advertising is now allowed” due to a change made through the Jobs Act. UGGG.

FAR 12/3/14, 87
AUD 2/3/14, 90
BEC 4/1/14, 88
REG 5/27/14, 94

Licensed CPA, Indiana

"Successful people do things that unsuccessful people don't want to do"

[Lindrobe]

I just ran across another MCQ that says that “No General Offering or Solicitation is permitted” for Rule 506, but the Ninja flashcards say that “General Solicitation and Advertising is now allowed” due to a change made through the Jobs Act. UGGG.

FAR 12/3/14, 87
AUD 2/3/14, 90
BEC 4/1/14, 88
REG 5/27/14, 94

Licensed CPA, Indiana

"Successful people do things that unsuccessful people don't want to do"

[zombiecpa]

https://www.another71.com/cpa-exam-forum/topic/reg-d-rule-504-conflicting-information-please-help

I think we should pick “solicitation is allowed”, only if it's the best answer available.

If there something like “15 days notification required”, I will pick that.

FAR 85
AUD 83
BEC 76
REG 90

[zombiecpa]

https://www.another71.com/cpa-exam-forum/topic/reg-d-rule-504-conflicting-information-please-help

I think we should pick “solicitation is allowed”, only if it's the best answer available.

If there something like “15 days notification required”, I will pick that.

FAR 85
AUD 83
BEC 76
REG 90

[Topsya]

hey @Lindrobe

are you referring to Wiley Test Bank or Wiley Book?

AUD - 90
FAR - 83
BEC - 81
REG - 80
ETHICS - 100

[Topsya]

hey @Lindrobe

are you referring to Wiley Test Bank or Wiley Book?

AUD - 90
FAR - 83
BEC - 81
REG - 80
ETHICS - 100

[Lindrobe]

I am referring to the Wiley test bank. I have decided I am not going to use it anymore for the “Federal Securities” topic because I am afraid it is going to confuse me.

FAR 12/3/14, 87
AUD 2/3/14, 90
BEC 4/1/14, 88
REG 5/27/14, 94

Licensed CPA, Indiana

"Successful people do things that unsuccessful people don't want to do"

[Lindrobe]

I am referring to the Wiley test bank. I have decided I am not going to use it anymore for the “Federal Securities” topic because I am afraid it is going to confuse me.

FAR 12/3/14, 87
AUD 2/3/14, 90
BEC 4/1/14, 88
REG 5/27/14, 94

Licensed CPA, Indiana

"Successful people do things that unsuccessful people don't want to do"

[zxiao]

In Becker, it says 504,505,and 506 are not allowed to do general solicitation. 504 does not require any specific disclosure to investors prior to the sale. For 505 and 506, when there are unaccredited investors, all investors must be given at least annual report containing audited financial statements.

I Can Do This!!!!!

BEC: 89
AUD: 99
REG: 93
FAR: 8/2/2014

[zxiao]

In Becker, it says 504,505,and 506 are not allowed to do general solicitation. 504 does not require any specific disclosure to investors prior to the sale. For 505 and 506, when there are unaccredited investors, all investors must be given at least annual report containing audited financial statements.

I Can Do This!!!!!

BEC: 89
AUD: 99
REG: 93
FAR: 8/2/2014

[Anonymous]

I've noticed all this too. For 506, NINJA notes say “New: Can solicit and advertise to accredited investors.” So I don't think Wiley is completely up to date on this.

I've also noticed that Wiley isn't update for the $14,000 gift exclusion. It still uses $13,000.

[Anonymous]

I've noticed all this too. For 506, NINJA notes say “New: Can solicit and advertise to accredited investors.” So I don't think Wiley is completely up to date on this.

I've also noticed that Wiley isn't update for the $14,000 gift exclusion. It still uses $13,000.

[h0wdyus]

For 504 Solicitation is allowed only if solicitation is made to accredited investors.

For 506

https://www.sec.gov/info/smallbus/secg/general-solicitation-small-entity-compliance-guide.htm

“To implement Section 201(a), the SEC adopted paragraph (c) of Rule 506. Under Rule 506(c), issuers can offer securities through means of general solicitation, provided that:

all purchasers in the offering are accredited investors,

the issuer takes reasonable steps to verify their accredited investor status, and

certain other conditions in Regulation D are satisfied.”

so ninja is right.

FAR - 81 29th Aug 2013
AUD - 84
REG - 82
BEC - 89 29th Aug 2014
Using Yager

FROM NJ

[h0wdyus]

For 504 Solicitation is allowed only if solicitation is made to accredited investors.

For 506

https://www.sec.gov/info/smallbus/secg/general-solicitation-small-entity-compliance-guide.htm

“To implement Section 201(a), the SEC adopted paragraph (c) of Rule 506. Under Rule 506(c), issuers can offer securities through means of general solicitation, provided that:

all purchasers in the offering are accredited investors,

the issuer takes reasonable steps to verify their accredited investor status, and

certain other conditions in Regulation D are satisfied.”

so ninja is right.

FAR - 81 29th Aug 2013
AUD - 84
REG - 82
BEC - 89 29th Aug 2014
Using Yager

FROM NJ

[h0wdyus]

@Cassandra. You are using old material. You have to use the wiley 2014 book which has the code for 2013. if the wiley book is 2013 then it has code for 2012.

Till May 2nd Quarter 2014 we need to use the code for 2013 which is present in wiley 2014 book.

FAR - 81 29th Aug 2013
AUD - 84
REG - 82
BEC - 89 29th Aug 2014
Using Yager

FROM NJ

[Author]

Replies