Glossary

Welcome to our glossary, your go-to resource for key terms in the Private Capital Markets and Compliance. Perfect for investors, entrepreneurs, or the curious, this guide simplifies complex concepts from the JOBS Act to digital securities.

Dive in to enhance your understanding and navigate the world of private investments with ease.

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45-106

45-106

45-106 refers to a regulation under Canadian securities law that provides exemptions from the prospectus requirement for certain types of securities offerings and transactions. This regulation is crucial for companies seeking to raise capital without the burden of a full prospectus.

708

708

708 is an exemption under Australian securities laws that allows private companies to raise capital from up to 20 investors in any 12-month period without needing to prepare a formal prospectus.

409a

409a

A 409a valuation is an assessment of the fair market value of a private company's common stock. This valuation is crucial for private companies when they issue stock options to their employees. The IRS requires that this valuation is done to ensure compliance with federal tax regulations, specifically to avoid deferred compensation issues that could arise from stock options being issued below market value.