Which of the following is false regarding Rule $506$ of the Securities Act of $1933?$

Multiple Choice

Rule $506($b$)$ offerings may have up to $35$ nonaccredited investors who qualify as $$sophisticated$.$

Issuers may not use Rule $506$ for smaller offerings.

Rule $506($b$)$ placements may be offered to an unlimited number of investors who qualify as accredited under Securities and Exchange Commission $($SEC$)$ rules.

It exempts from registration private, noninvestment company offerings in unlimited amounts that are not generally advertised or available to the general public.