REGULATION S Meaning and
Definition
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Regulation S is a term used in the finance industry to refer to a regulation implemented by the United States Securities and Exchange Commission (SEC) under the Securities Act of 1933. It provides exemptions from certain registration requirements for securities offerings made outside the United States.
The purpose of Regulation S is to regulate the issuance and trading of securities outside the jurisdiction of the United States. It allows companies based outside the US to offer and sell securities to non-US investors without requiring them to register with the SEC. The regulation also provides exemptions for offshore resales of securities originally issued in the US market.
Under Regulation S, there are two main categories for offshore offerings: Category 1 and Category 2. Category 1 offerings are transactions conducted entirely outside the US and involve no directed selling efforts within the US. Category 2 offerings include transactions that may involve directed selling efforts in the US to qualified institutional buyers or to certain other non-US investors.
It is important to note that Regulation S imposes restrictions on the resale of securities acquired through offshore offerings. These restrictions aim to prevent the securities from finding their way back into the US market through illegal activities such as "backdoor" trading.
Overall, Regulation S provides a framework for securities offerings and trading outside the United States, helping to facilitate international capital flows while maintaining appropriate investor protection measures.
Common Misspellings for REGULATION S
- eegulation s
- degulation s
- fegulation s
- tegulation s
- 5egulation s
- 4egulation s
- rwgulation s
- rsgulation s
- rdgulation s
- rrgulation s
- r4gulation s
- r3gulation s
- refulation s
- revulation s
- rebulation s
- rehulation s
- reyulation s
- retulation s
- regylation s
- reghlation s
Etymology of REGULATION S
The term "Regulation S" refers to a regulation promulgated by the U.S. Securities and Exchange Commission (SEC) under the Securities Act of 1933. The etymology of the term can be broken down as follows:
- "Regulation" comes from the Latin word "regulatio", which means "a rule or guide".
- The letter "S" in "Regulation S" stands for "Safe Harbor". In legal terms, a "safe harbor" typically refers to a provision that provides protection from liability under certain circumstances.
The specific etymology or origin of the term "Regulation S" beyond its literal meaning is related to the development and implementation of securities laws and regulations in the United States.
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