Rule 506(c)
In accounting, rule 506(c) means the private placement that allows general solicitation — posting the round publicly — on condition that every purchaser is accredited and the issuer takes reasonable steps to verify it.
Authority: 17 CFR §230.506(c) (opens in a new tab). Sources
The lesson that teaches this
From the free founder back-office course, taught on one company's books, with exercises to work it yourself.
What it is not called
Each of these means something else. Use one here and an accountant reading the product notices.
- Rule 506(b)
- crowdfunding
Nearby in the catalog
No component names this concept outright. These sit in the same part of the system.
Also in Equity & financing
Defined in Lexicon. This page is generated from that document, so the two can't disagree.