When raising capital, occasionally investors will want their equity distribution in an SEC recognized format like a Private Placement Memorandum, also known as a PPM. This structure makes use of one of the three Regulation D exemptions stemming from the Securities Act of 1933. The three exemptions are Regulation D Rule 504, Rule 505 and Rule 506.

There is something very important to know when you’re raising capital for your business: Under the Securities Act of 1933, to sell securities you must register them with the SEC or meet an exemption. Don’t worry. It sounds a lot scarier than it really is.