@MrsBing
Tricky question. Hope my explanation makes sense:
Regulation D as defined is intended for private offerings, therefore, the regulation prohibits “general” advertising of the securities. Under Reg D there are three private offering exemptions : 504, 505 & 506. Having said that, there is an exception where general advertising under 504 might be allowed which is -as long as it is restricted to accredited investors. I'm guessing that's what your notes might be referring to.
My notes on Rule 504: General offering and solicitations are permitted under Rule 504 as long as they are restricted to “accredited investors”.
The question does not state that it's too accredited investors, so B would be the correct answer.
I got it wrong the first time too and did some research, hope this helps! 🙂
AUD - Jan 9,13 Pass
REG - Aug 30,13 Pass
BEC - Oct 26,13 Pass
FAR - Dec 4,13 Pass
Licensed CPA in the state of Oregon