# Rule 701

> Rule 701 — 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.

Source: https://lopifi.com/glossary/rule-701
Part of: Lopifi — US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

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**What is 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.

## Words this system refuses for it

- Regulation D
- S-8 (for public companies)

- **Category:** Equity & financing
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)