A more thorough explanation:

An exempt offering is a type of securities offering where the issuer is not required to file a registration statement with the Securities and Exchange Commission (SEC). This means that the issuer can sell securities without having to go through the lengthy and expensive process of registering with the SEC.

One example of an exempt offering is a private placement. In a private placement, the issuer sells securities to a small group of investors, usually institutional investors or high net worth individuals. Because the offering is limited to a small group of investors, the SEC allows the issuer to bypass the registration process.

Another example of an exempt offering is a crowdfunding campaign. Under certain circumstances, companies can use crowdfunding to raise money from a large number of investors without having to register with the SEC.

Exempt offerings are a way for companies to raise money without having to go through the time-consuming and expensive process of registering with the SEC. However, because exempt offerings are not subject to the same level of regulatory scrutiny as registered offerings, investors should be aware of the risks involved.