Section 4 2 Exemption

Section 4 a 2 of the securities act formerly section 4 2 but redesignated section 4 a 2 by the jobs act provides an exemption from the provisions of section 5 of the securities act for transactions by an issuer not involving any public offering companies rely on this private placement exemption for a wide variety of transactions including but not limited to initial sales of equity directly to investors or through financial intermediaries.

Section 4 2 exemption. This exemption is not available for the resale of securities purchased by investors in a private placement. Section 4 a 2 exemption. Section 4 a 2 of the securities act of 1933 as amended the securities act exempts rule 506 b securities offerings from the sec s registration requirements when the transactions are by an issuer and do not involve a public offering of securities.

Section 4 a 2 to qualify for this exemption which is sometimes referred to as the private placement exemption the purchasers of the securities must. It is not necessary in connection with the exchange in the manner contemplated herein to register the issuance of the shares and exchange notes under the securities act in reliance on the exemption from registration set forth under section 4 a 2 of the securities act. Rule 506 b is used by both private and public companies seeking to raise capital without the use of general solicitation and advertising.