In the United States, a securities offering that can only be purchased in the state in which it is being issued. Because the offering does not include more than one state, it does not fall under the jurisdiction of the Securities and Exchange Commission and therefore does not need to be registered with the SEC. The offering does, however, fall under the jurisdiction of state regulators.
Investopedia Says:
In order to be exempt from SEC regulations, the offering must meet the following requirements: it must be sold only to residents of the state in which it is issued; the issuing company must be registered in the state; and the company must do a significant amount of business in the state. Some companies choose this type of issue because it is less expensive than registering with the SEC.
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Find out how this regulatory body protects the rights of investors. Policing The Securities Market: An Overview Of The SEC
Learn to decipher the secret language of the prospectus - it can tell you a lot about a company's future. Don't Forget To Read The Prospectus!
