Exempt Transactions and Securities Flashcards
6 cards from real Series 63 – Uniform Securities Agent State Law Exam practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Exempt Transactions and Securities flashcards as text
Which of the following is an example of an exempt transaction under the USA?
Answer: An isolated non-issuer transaction by a registered broker-dealer
An isolated non-issuer transaction, such as an individual selling their own securities through a broker-dealer, is an exempt transaction under the USA.
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?
Answer: 10
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.
Which of the following securities is exempt from registration under the USA?
Answer: Securities issued by a foreign government with which the US maintains diplomatic relations
Securities issued by foreign governments that maintain diplomatic relations with the US are exempt from registration under the USA.
A sale of securities to a bank or insurance company is an example of what type of exemption under the USA?
Answer: Transaction exemption
Sales to institutional investors such as banks or insurance companies are transaction exemptions under the USA, not security exemptions.
Under the USA, which of the following is NOT an exempt transaction?
Answer: A solicited sale of unregistered securities to 50 retail investors
A solicited sale of unregistered securities to 50 retail investors does not qualify as an exempt transaction and would require registration.
Which of the following best describes the 'preemptive rights' transaction exemption under the USA?
Answer: Sales to current shareholders through a rights offering require no registration
A transaction involving an offer or sale to existing security holders pursuant to preemptive rights is an exempt transaction under the USA.
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