The process whereby a company seeks interest from the public at large for an offering either through advertising or any other forms of mass communication. Hence, general solicitation is said to include almost any use of the mass media in awakening an interest in a security or offering (e.g. advertisements, articles, notices, broadcasts, meetings, seminars, etc). Once the registration statement in a public offering has been issued, and even before such issuances as is the case with a red herring (provided that the final prospectus enclosed in the registration statement is disseminated to the offerees), the prospectus can be dispatched to prospective investors. In the United States, Rule 502(c) prohibits the use of general solicitation except in certain cases under Rule 504.
For a private placement to qualify for the exemption from registration under Regulation D, no general solicitation may be used. For example, companies shall not use any form of general solicitation to prospective investors for the sale of unregistered securities.
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