Regulation D: The Rule 504 Exemption

This lesson is an introduction to Rule 504 of Regulation D, an exemption from the registration requirement of the Securities Act of 1933. Before taking this lesson, students should have a basic understanding of the Securities Act of 1933 and its registration requirement.

The lesson provides links to the relevant regulatory provisions, but you might find it helpful to have your own copy of Regulation D as you take the lesson.

Learning Outcomes

On completion of the lesson, the student will be able to:

1. List the three types of companies that are excluded from using the Rule 504(a) exemption.
2. List two of the requirements from Rule 504(b)(1) that are necessary to qualify for the exemption.
3. Describe the purpose of Rule 502(c) and any of its exceptions.
4. Define the resale restrictions in Rule 502(d).
5. Explain the function of Rule 508.
6. Apply the main requirements of Rule 504 to determine if offers and sales fit within the exemption.