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SIE.1.D.1 FINRA · SIE

Primary offerings — registration, Reg D, Reg A, IPO process

Node 4 of 13 in SIE

Objectives

  • Identify the key rules and §§ that apply to primary offerings — registration, reg d, reg a, ipo process.
  • Apply the SIE.1.D.1 knowledge element in a typical exam scenario.
  • Recognize common distractors and partial-credit answers.

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SIE.1.D.1 · SIE.1.D.2

Primary offerings — registration, Reg D, Reg A, IPO process

SIE · Section 1 — Knowledge of Capital Markets 1.D · The Offering Process

**The Securities Act of 1933** requires any non-exempt offering to be registered with the SEC on Form S-1 (or S-3/S-4/F-1 etc.). Three periods:

• **Pre-filing period** — no offers of any kind ("gun jumping" is a §5 violation). • **Waiting period (cooling-off)** — red herring preliminary prospectus may be distributed; oral offers allowed; no sales. • **Post-effective period** — sales with a final prospectus (§10 prospectus).

A **tombstone ad** identifies the security/issuer/underwriters and may be published during the waiting period; it is NOT an offer per §2(a)(10)(b).

**Exempt offerings:**

• **Reg D Rule 506(b)** — unlimited $, up to 35 non-accredited sophisticated investors + unlimited accredited; no general solicitation. • **Reg D Rule 506(c)** — unlimited $, accredited only, general solicitation permitted if issuer verifies accreditation. • **Reg A+ Tier 1** — up to $20M/12mo, state-coordinated. • **Reg A+ Tier 2** — up to $75M/12mo, preempts state registration, subject to ongoing reporting (1-K/1-SA/1-U). • **Rule 147/147A intrastate** — offering and buyers in same state. • **Regulation Crowdfunding (Reg CF)** — up to $5M/12mo through a registered funding portal.

**IPO pricing & allocation:** FINRA Rule 5130/5131 restrict allocation of 'new issues' to restricted persons (industry insiders) and policy-makers/executives at covered companies. Stabilizing bids permitted under SEA Rule 104 of Reg M.

Securities Act §5 / §10 Reg D 17 CFR 230.506 FINRA Rule 5130

Check yourself

3 quick questions — no score kept, just formative feedback.

  1. Q1 · SIE.1.A.1

    Which federal statute established the SEC and primarily regulates secondary-market trading of securities?

    Answer choices
  2. Q2 · SIE.1.D.2

    An issuer wants to raise $40 million from accredited investors using general solicitation. Which exemption applies?

    Answer choices
  3. Q3 · SIE.1.A.2

    The Securities Act of 1933 primarily regulates:

    Answer choices

Tutor

Scoped to SIE.1.D.1 · SIE.1.D.2 .

  1. Ask questions about this passage. Answers cite the specific corpus chunk and regulation. The tutor will never reproduce real exam items.