In April 2014, American innovations Corp generally advertises that it will make a $3 million offering of stock in July. American innovations Corp makes the offering as advertised and, ten days after the first sale, notifies the Securities and Exchange Commission (SEC). All of the buyers of the stock are given all of the material information about the company, its business, and the stock. The buyers sanctions on the ground that this offering was not exempt from registration. American innovations Corp argues that the applicable exemption is Rule 505 of regulation D of the Securities Act of 1933 and that because of this exemption, any resale of the stock is also exempt. Who is correct?