What major advantage does Rule 147 provide for in-state businesses?

The major advantage provided by Rule 147 for in-state businesses is that it permits raising capital without SEC registration. Rule 147 is a safe harbor exemption under the Securities Act of 1933 that allows companies to offer and sell their securities within their home state without having to register the offerings with the SEC, as long as certain conditions are met. This exemption significantly reduces compliance costs and administrative burdens for local businesses seeking to raise funds from residents of their state. By enabling in-state companies to access capital more easily, Rule 147 encourages investment in local economies.

In contrast, other options address misconceptions about the scope of Rule 147. While there are regulations in place, the exemption specifically pertains to state-level offerings rather than providing blanket immunity from all regulations or allowing for interstate sales. Additionally, while the rule is focused on in-state offerings, it does not extend to international trading of securities.