Reg D (Regulation D)

Regulation D (Reg D) is a set of U.S. Securities and Exchange Commission (SEC) rules that allows companies to raise capital by selling securities without having to register them, making the process quicker and less expensive. It sets specific criteria for offerings to limited investors, often called "accredited investors," who meet certain income or net worth requirements. Reg D has three main exemptions—Rules 504, 505, and 506—each with different limits and requirements regarding the amount of money raised and the number of investors, providing entrepreneurs flexibility in funding while ensuring basic investor protections.