Under the federal securities laws, a company that offers or sells its securities must register the securities with the SEC or find an exemption from the registration requirements. The federal securities laws provide companies with a number of exemptions. For some of the exemptions, such as Rule 506 of Regulation D, a company may sell its securities to what are known as accredited investors. The term accredited investor is defined in Rule 501 of Regulation D.
Look Out for High-Yield Investment Program Scams
Our recent Investor Alert warns investors that websites promoting High-Yield Investment Programs are likely scams.
Would You Invest in HoweyTrade?
Does it look more like a legitimate investment opportunity or an investment scam? What red flags can you spot, if any?