Glossary

Republic

Republic is an online platform that facilitates crowdfunding, allowing startups and small businesses to raise capital from the general public and accredited investors under specific regulatory frameworks.

RegD 506b

RegD 506b is a rule under Regulation D of the SEC that allows entities to raise funds without registering the securities with the SEC, provided they are offered only to accredited investors and up to 35 other purchasers.

Regulated Crowdfunding

Regulated Crowdfunding involves raising funds through registered platforms under specific legal frameworks that govern such activities. It is designed to protect investors while providing smaller companies with access to capital, typically subject to caps on investment amounts and rigorous disclosure requirements.

Restricted Stock

Restricted stock refers to shares of stock that are issued to an employee as equity pay but cannot be transferred until certain conditions, such as a vesting period, are met. The restrictions are intended to align the interests of the employees with those of the company.

RWA (Real World Assets)

Real World Assets (RWA) refer to physical, tangible assets such as real estate, commodities, or equipment that can be tokenized into digital assets on a blockchain, providing easier and fractionalized ownership, increased liquidity, and a broader distribution of investment opportunities.

RegD 506c

RegD 506c is a provision under the U.S. securities law that allows issuers to broadly solicit and generally advertise an offering, provided that all purchasers in the offering are accredited investors.

RegS

RegS are provisions under the U.S. securities laws that provide specific guidelines for issuing securities in non-U.S. markets, exempt from registration requirements provided by the U.S. Securities and Exchange Commission.

RIA (Registered Investment Advisor)

RIA is an advisor or firm engaged in the advisory business and registered either with the Securities and Exchange Commission (SEC) or state securities authorities.

RRSP (Registered Retirement Savings Plan)

RRSP is a type of Canadian account for holding savings and investment assets, with certain tax benefits to promote saving for retirement.

RTO (Reverse Takeover)

RTO is a strategy wherein a private company acquires a publicly traded company to bypass the complexities and costs associated with the process of becoming a publicly traded company.

Registry

A Registry in finance is a database of financial information regarding assets, including details about ownership and rights. This term can refer to both the process of registering information and the entity that maintains the records.

Retail Investor

A Retail Investor, also known as an individual investor or small investor, is a non-professional investor who buys and sells securities, mutual funds, or ETFs through brokerage firms or savings accounts.

Raising Capital

Raising Capital is the process by which a company secures money from external sources, such as investors or lenders, to fund its operations, growth initiatives, or investments.

Rialto Markets

Rialto Markets is known for providing innovative solutions in the securities market, focusing on secondary market liquidity for private securities. It operates under various regulatory frameworks to enhance market access and efficiency.

Rule 17a-4

Rule 17a-4 is an SEC regulation that outlines the recordkeeping requirements for broker-dealers, specifying how records should be stored to ensure they are secure and retrievable.

Regulations

Regulations in the financial context refer to the rules and guidelines issued by governmental bodies that dictate how financial institutions and markets operate. These are designed to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.

Regulation A (RegA+)

Regulation A+, an update to the older Regulation A, allows smaller companies to publicly raise money with less stringent regulatory requirements than a full IPO. Tier 1 of RegA+ allows companies to raise up to $20 million in 12 months, while Tier 2 raises this limit to $75 million, subject to more rigorous disclosure and reporting standards.

Regulation CF (RegCF)

Regulation Crowdfunding (RegCF) allows eligible companies to offer and sell securities through crowdfunding. This regulation is part of the JOBS Act and enables even non-accredited investors to invest in startups and small businesses, with certain annual limits based on their income and net worth.

Regulation D (RegD)

Regulation D is a SEC regulation that provides exemptions from the larger registration requirements, allowing companies to raise capital through the sale of equity or debt securities without having to register their securities. This regulation is often used by small to medium-sized enterprises for shorter-term, less costly, private fundraising.

Rolling Closes

Rolling closes refer to a funding strategy where an investment round is closed in phases instead of all at once. This allows startups and other businesses to secure capital as they meet funding milestones, providing flexibility in managing cash flow and investor relations. It can help maintain momentum in fundraising by accommodating new investors without the need to immediately finalize the round.

Rule 12g

Rule 12g, under the Securities Exchange Act of 1934, governs the registration, reporting, and deregistration of securities for publicly-traded companies based on certain thresholds of assets and shareholder numbers.

Rule 144

Rule 144 provides a regulatory framework for the public resale of restricted, unregistered, or control securities without having to register them with the SEC. It stipulates the specific conditions under which such sales can occur, such as holding periods, volume limitations, and filing requirements.