It's the TL;DR version of an audit...for the busy executive or investor, who would really prefer the Short-Short-Short-Form report, which would say something like "financials good" or maybe just consist of a dollar sign followed by either a thumbs-up or poop emoji.
The short-form report gets into a little more detail than that. But it's still an abbreviated version of an audit's findings.
It's usually a two-paragraph statement added to a firm's financial statements, giving an overview of the audit. It also includes the auditor's opinion as to whether the financial statements provide a true and accurate description of the company's situation. Fundamentally, it's a slightly wordier version of the thumbs-up or poop emoji.
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Finance: What is Regulation D?0 Views
finance a la shmoop what is Regulation D well it's another diet regulation drink [Man holding Regulation D can]
which gets companies selling stocks or bonds out of the small forest they have
to kill to print all the paperwork required by the SEC in a full rollout [Paper printing]
public offering Regulation D is sort of the special situation common in these
letter regulations which in this case simply restricts the company issuing the
securities to only sell to a qualified private investor set but what is
qualified well it generally means that those private investors are already [Private investor man appears]
wealthy net worth the you know in the millions of dollars may have continuing
income well into the hundreds of thousands or millions of dollars per
year they're educated yes broadly defined and [Man with degree certificate and graduation cap]
it doesn't just mean they've taken a fourteen dollars from of course and most
importantly they will have signed a big boy or a big girl letter which states [A big boy/girl letter]
that if this risky offering goes completely bust well then no tears or
lawsuits in a reg D filing there is usually an allocation for sales beyond
the above accredited private investors and some amount of the stock can be sold
to non-accredited investors and in current reg deal and that number is
limited to thirty five so why would the SEC allow a highly risky private
investment be able to be made to a meaningful number of non-accredited
investors like people who might not be millionaires they might be uneducated [Man emptying jean pockets]
are you not taking the shmoop course or any others or unsophisticated in the
wilds of the financial jungle well because in many early-stage startup [Lion attacks woman in jungle]
companies the founders have a few dozen family members who are all anxious to [Girl biting nails]
find the next Amazon and even though they are a plumber and a carpenter and a
cook they have five grand of savings with which they want to buy a lottery
ticket so the SEC makes accommodation for this investment in reg D and oh by
the way this is actually what happened when Jeff Bezos founded and started [Jeff Bezos with colleagues]
Amazon yeah family members bought in in yeah dreams really do come true
Up Next
Reg A is an exemption for the sale of securities. We wonder if it has any sweet steel drums in the background.
A shelf registration is a kind of public offering where banks and other institutions can offer new securities in companies without going through an...
Piggyback registration occurs when a company's newly printed shares are sold to the public, and the existing shares "piggyback" onto them.