Rule 505 vs. 506 Regulation D: Key Differences Every Investor Should Know
Rule 505 and Rule 506 of Regulation D are SEC exemptions letting private companies raise capital without full public registration; 505 caps at $5 M and limits unaccredited investors to 35, while 506 has no dollar cap and allows unlimited accredited investors. Startups often file “Form D” late at night, mixing up the two rules…