Bad actor disqualification
Bad actor disqualification refers to certain events involving covered persons that can affect eligibility to use some securities exemptions. The rules and exceptions are specific.
Why it matters to a capital raiser
I treat this as a matter for securities counsel during offering preparation.
Related terms
- Reg D
- 506(b)
A term can mean something different in a particular deal, so read it with the governing documents. General education only. Not legal, tax or investment advice.