: Unlike 506(b), companies can use their website, social media, or other public advertisements to attract investors.
: Issuers are strictly prohibited from using public advertising or "general solicitation" to market the deal. : Unlike 506(b), companies can use their website,
: Issuers must take "reasonable steps" to verify an investor’s status, such as reviewing tax returns or bank statements, rather than just relying on the investor's word. Comparison at a Glance Rule 506(b) Rule 506(c) Public Advertising Prohibited Accredited Investors Non-Accredited Investors Up to 35 (must be sophisticated) None Allowed Verification Method "Reasonable Belief" "Reasonable Steps to Verify" : Unlike 506(b)