Rule 506 does not limit the dollar amount of the securities that may be sold in a private placement. The securities may be sold to an unlimited number of accredited investors. However, each nonaccredited investor must, either alone or with a purchaser representative, have such knowledge and experience in financial and business matters that the investor is capable of evaluating the merits and risks of the prospective investment (or the company must believe at the time the securities are sold that each nonaccredited investor satisfies this requirement).

Rule 506 requires detailed disclosure of relevant information to potential investors; the extent of disclosure depends on the dollar size of the offering.