While Section 4(2) does not limit the dollar amount of an offering, the interpretation of the law has stipulated that:

While Section 4(2) does not limit the dollar amount of an offering, the interpretation of the law has stipulated that:


a. the investors must be sophisticated

b. the number of investors must be limited to 35

c. the funds must be raised within a 12-month period

d. the offering must be extended to the public, and not only investors who have a relationship with the issuer


Answer: the investors must be sophisticated


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