Rule 701
In accounting, rule 701 means the exemption a private company uses to grant options and stock to employees, directors, officers and individual consultants under a written compensatory plan — up to the greatest of $1,000,000, 15% of total assets or 15% of the class in any 12 months, with extra disclosure above $10 million.
Authority: 17 CFR §230.701 (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.
- Regulation D
- S-8 (for public companies)
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.