Accredited Investor, Reg D, 506(b)/506(c), Form D, and Blue Sky Definitions
What accredited investor, Reg D, 506(b)/506(c), Form D, and Blue Sky mean.
An accredited investor is someone who is meeting income/net-worth (or credential) thresholds to invest in private offerings. For these private offerings, a Reg D provides exemptions from SEC registration. Two other exemptions are 506(b) and 506(c). 506(b) allows for existing investor relationships and no general solicitations, while 506(c) allows for public solicitation, but requires verification that all investors are accredited. A Form D is filed with the SEC after the funds are raised and states the exemptions you wish to claim. Blue Sky filings satisfy the state notice requirements that you have a filed a Form D and have requested certain exemptions.
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