Under Rule 506(c), advertising is permitted provided what condition is met?

• A. True
• B. False
• C. Advertising not allowed
• D. Accredited status not required

Answer: (A)

Rule 506(c) allows general solicitation for private placements, but only if every purchaser is an accredited investor and the issuer takes reasonable steps to verify their status. That means advertising is permitted provided all buyers are accredited investors and verification is carried out. This ensures the offering remains within the Reg D exemption while allowing marketing to a broad audience. If any purchaser isn’t accredited or verification isn’t done, advertising under this rule isn’t permissible. So the statement that advertising is allowed provided all purchasers are accredited investors is true.