Private placements are sales to a small number of sophisticated investors. Generally there can be no more than 35 non-accredited investors in the placement.  Accredited investors include individuals with income of $200,000 per year ($300,000 jointly with their spouses) or net assets of at least $1 million (excluding their primary residence).

Recently, the SEC has allowed private placements to make use of general advertising and general solicitation if the investors are all verified to be accredited.

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