ShmoopTube
Where Monty Python meets your 10th grade teacher.
Search Thousands of Shmoop Videos
Trusts and Estates Videos 178 videos
What is bankruptcy? Deadbeats who can't pay their bills declare bankruptcy. Either they borrowed too much money, or the business fell apart. They t...
A redemption charge is a charge applied when you redeem shares of a mutual fund in a deferred commission purchase structure.
What was the Tax Reform Act of 1986? Hit play to find out.
Finance: What is Regulation A? 7 Views
Share It!
Description:
Reg A is an exemption for the sale of securities. We wonder if it has any sweet steel drums in the background.
- Social Studies / Finance
- Finance / Financial Responsibility
- College and Career / Personal Finance
- Life Skills / Personal Finance
- Finance / Finance Definitions
- Life Skills / Finance Definitions
- Finance / Personal Finance
- Courses / Finance Concepts
- Subjects / Finance and Economics
- Finance and Economics / Terms and Concepts
- Terms and Concepts / Accounting
- Terms and Concepts / Board of Directors
- Terms and Concepts / Careers
- Terms and Concepts / Company Management
- Terms and Concepts / Entrepreneur
- Terms and Concepts / Ethics/Morals
- Terms and Concepts / Financial Theory
- Terms and Concepts / Incorporation
- Terms and Concepts / Investing
- Terms and Concepts / Tax
- Terms and Concepts / Tech
- Terms and Concepts / Trusts and Estates
Transcript
- 00:00
Finance allah shmoop what is regulation eh Don't worry about
- 00:08
a thing because every little thing going to be all
- 00:11
right Ok Not reggae greg a our apologies for singing
- 00:17
there too mr marley's ghost Alright Well regulation a is
- 00:21
like security sale Light diet jenny craig Well specifically a
Full Transcript
- 00:26
regulation A offering is one that carries a total notional
- 00:30
value of less than five million bucks worth of securities
- 00:34
as sold within a one year time frame All right
- 00:36
what is this one year thing It means that the
- 00:38
total dollar amount of securities sold for that given issuer
- 00:43
of them within a year would fall under the easy
- 00:46
breezy regulatory world of rig a If it had a
- 00:50
five sales of a million dollars of dead or equity
- 00:53
or less within one year if it had a sixth
- 00:57
sale meaning it would push it over Five million told
- 01:00
raise that year Then it would not fall under the
- 01:02
wreg a system and it would have to do an
- 01:05
enormous number of somersaults as if it was doing a
- 01:07
multimillion or billion dollar offering to the massive public There
- 01:12
are other little gotsch is inside of the reggae world
- 01:15
Like the company does not have to provide fancy securities
- 01:19
and exchange act reports until it has mohr than five
- 01:22
hundred shareholders and more than ten million box and assets
- 01:25
Why is reggae even a thing paperwork and small companies
- 01:31
doing offerings all the time with such a small offering
- 01:33
size The sec doesn't make you spreadem or you know
- 01:37
turn your head and cough nor does it take blood
- 01:40
urine or other samples love things when inspecting the legitimacy
- 01:44
of your offering feeling the need to keep myriad lawyers
- 01:48
employed Of course reggae grew more complex over time One
- 01:52
complexity revolves around the two tears under which reggae types
- 01:56
of filings must live Tier one allows for a rig
- 01:59
a style a simple offering to flex or expand to
- 02:03
be twenty million dollars in cap in one year with
- 02:07
filings that have to conform to the standards and that
- 02:10
are subject to their complaint list The good news for
- 02:12
the company Well they only have to do this upon
- 02:15
the offering not every quarter Then we have a tear
- 02:18
to flavor of a reggae offering In this somewhat more
- 02:21
complex twist companies may sell upto fifty million dollars in
- 02:25
securities in a one year period this sales also quickly
- 02:28
vetted by the sec but it doesn't have to be
- 02:31
vetted by state regulators and an army of lawyers And
- 02:35
unlike tier one into issuers well it must report financial
- 02:38
status regularly as in quarterly almost as if the company
- 02:42
is already a public corporation That's about it Long story
- 02:45
short reggae is an exemption for the sale of securities
- 02:49
that an exemption from mountains and mountains of paperwork and
- 02:53
filing an expense in raising money Reggae was basically a
- 02:57
nod to small startup e kinds of companies so that
- 03:01
they didn't have to spend half the money they raised
- 03:03
on lawyers and filing things and stuff for government bureaucrats
- 03:08
Tio no Stare at all right Well in parting we'd
- 03:11
like to thank our kindly sponsors at nyquil z z
- 03:13
z for their help and cooperation in producing this fine 00:03:17.37 --> [endTime] regulation A video
Related Videos
What is bankruptcy? Deadbeats who can't pay their bills declare bankruptcy. Either they borrowed too much money, or the business fell apart. They t...
GED Social Studies 1.1 Civics and Government
What's a dividend? At will, the board of directors can pay a dividend on common stock. Usually, that payout is some percentage less than 100 of ear...
How are risk and reward related? Take more risk, expect more reward. A lottery ticket might be worth a billion dollars, but if the odds are one in...