SIE (Securities Industry Essentials) Practice Exam

An offering done under Regulation D is often called:

1. A public offering

2. A secondary offering

3. A private placement

4. An IPO

The correct answer is: A private placement

Private placements are offerings made under Regulation D, which allows companies to raise capital from investors without having to register with the Securities and Exchange Commission (SEC). This exemption is often used by smaller companies looking to raise funds from a select group of private investors, rather than the general public. Options A, B, and D are all incorrect because they involve offerings that are made to the general public and would require registration with the SEC. A public offering is when a company offers securities to the general public, a secondary offering occurs when a company issues additional shares of stock after its IPO, and an IPO (initial public offering) is the first time a company sells its stock to the general public.