What Does Regulation D Mean in Banking?


Quick Answer

Regulation D in banking is an exemption under the Securities Act of 1933 allowing some companies to buy and sell securities without registering with the Securities and Exchange Commission, according to the SEC’s official website. Rules 504, 505 and 506 under the Act provide the exemptions.

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Full Answer

Rule 504 allows companies to sell up to one million of their own securities in a 12-month period without filing with the SEC. Rule 505 provides an exemption to companies that offer and sell up to five million shares in a 12-month period. Rule 506 allows companies to offer an unlimited amount of shares in a 12-month period without registering, explains the U.S. Securities and Exchange Commission.

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