Series 63 – Uniform Securities Agent State Law Exam Exempt Transactions and Securities

Question 1

Which of the following is an example of an exempt transaction under the USA?

Accepted Answer

An isolated non-issuer transaction by a registered broker-dealer

Answer

An isolated non-issuer transaction, such as an individual selling their own securities through a broker-dealer, is an exempt transaction under the USA.

Question 2

Under the USA, a private placement sold to no more than how many non-institutional purchasers in a 12-month period qualifies as an exempt transaction?

Accepted Answer

10

Answer

Under the USA, a private placement sold to no more than 10 non-institutional purchasers in a 12-month period in a state qualifies as an exempt transaction.

Question 3

Which of the following securities is exempt from registration under the USA?

Accepted Answer

Securities issued by a foreign government with which the US maintains diplomatic relations

Answer

Securities issued by foreign governments that maintain diplomatic relations with the US are exempt from registration under the USA.

Question 4

A sale of securities to a bank or insurance company is an example of what type of exemption under the USA?

Accepted Answer

Transaction exemption

Answer

Sales to institutional investors such as banks or insurance companies are transaction exemptions under the USA, not security exemptions.

Question 5

Under the USA, which of the following is NOT an exempt transaction?

Accepted Answer

A solicited sale of unregistered securities to 50 retail investors

Answer

A solicited sale of unregistered securities to 50 retail investors does not qualify as an exempt transaction and would require registration.

Series 63 – Uniform Securities Agent State Law Exam Practice Test

Series 63 – Uniform Securities Agent State Law Exam Practice Test

Series 63 – Uniform Securities Agent State Law Exam Exempt Transactions and Securities