Rule 147 intrastate offering is characterized by which statement?

• A. True
• B. False
• C. Only for cross-border offerings
• D. Not applicable

Answer: (A)

Rule 147 is about an exemption for offerings that stay entirely within one state. The key idea is that the issuer is doing business in that state, all investors are residents of that state, and the sale is confined to that state. That intrastate focus—no cross-border sales to out-of-state residents—is what makes the offering eligible for exemption from federal registration. So saying that the intrastate offering is characterized by being limited to residents of a single state is correct. The other choices imply cross-border or no applicability, which do not describe Rule 147 intrastate offerings.