A:

Transactions are exempt from registration where …

a. A sale, or offer of sale is made to ALL clients of a brokerage firm.

b. The securities are listed on a major exchange, like the Nasdaq or the NYSE.

c. The transaction involves a sale, or offer to sell, to an institutional investor, federal covered investment advisor or any other person exempted.

d. The transaction is between a broker and a dealer.



Correct answer: "c"
The thirteenth bullet point under the exempt transactions portion of the study guide states exempt transactions are:

o Sale or offer of sale to:

- An institutional investor.

- Federally covered investment advisor.

- Any other person exempted.

RELATED FAQS
  1. According to the USA, it is unlawful for a person to offer to sell a security in ...

    a. the security is registered with Federal Reserve. b. it is a federal covered security, is exempted from registration, or ... Read Answer >>
  2. If ABC corporation, which is listed on the New York Stock Exchange ...

    The correct answer is d). This transaction would qualify under two different exemptions – the first because it is an exchange ... Read Answer >>
  3. ABC Broker-dealer has no office in state and transacts fewer than five trades during ...

    The correct answer is b. Under these circumstances, the broker-dealer is not required to register with the state and the ... Read Answer >>
  4. Who is exempt from paying Social Security taxes?

    Learn about the groups of people who qualify for exemption from Social Security taxes, and explore the process of applying ... Read Answer >>
  5. What property / belongings can I keep after filing bankruptcy?

    Discover which types of property you can keep after filing bankruptcy by listing them as exempt from normal liquidation proceedings. Read Answer >>
  6. Can my IRA be garnished for child support?

    Find out about the different federal and state protections for IRA funds, and when your IRA savings can be garnished to satisfy ... Read Answer >>
Related Articles
  1. Personal Finance

    Are You Missing Out On These Tax Exemptions?

    To lower your tax bill, make sure that you're taking all the exemptions that apply to you.
  2. Professionals

    Succeeding At The Series 63 Exam

    Your career as a securities agent begins with this test. We'll show you how to score high.
  3. Personal Finance

    Understanding the Widow’s Exemption

    A widow’s exemption generally refers to the amount a widow can deduct from her taxable income to reduce her tax burden.
  4. Personal Finance

    8 States With Estate Taxes

    Understand the difference between the federal estate tax and state-specific estate taxes. Learn about some of the worst states with estate taxes.
  5. Financial Advisor

    The Impact of Fiduciary Rule on Annuity Sales

    The new fiduciary rule has a far reaching effect on the annuity sales process for advisors and clients.
  6. Financial Advisor

    Some Annuities Lose Fiduciary Rule Exemption

    Fixed-indexed annuities have lost an exemption under the final fiduciary rule, a move that wasn't expected.
  7. Investing

    Principal Trading and Agency Trading

    Ever wonder what happens behind the scenes when you buy or sell a stock? Read on and find out!
  8. Investing

    What Are Transaction Costs?

    Transaction costs are expenses incurred from buying or selling securities.
  9. Investing

    Series 63 Exam State Securities Administrator

    Learn what you need to know about the state securities administrator to pass the Series 63 exam.
  10. Financial Advisor

    The Fiduciary Rule: What Advisors Need to Know

    The rules surrounding the DOL's fiduciary proposal are confusing for advisors and clients. Here’s what we know so far.
RELATED TERMS
  1. Exempt Income

    Certain types or amounts of income not subject to federal income ...
  2. Exempt Transaction

    A type of securities transaction where a business does not need ...
  3. Personal Exemption

    The dollar amount that each individual taxpayer is able to deduct ...
  4. SEC Form D

    A filing with the Securities and Exchange Commission (SEC) required ...
  5. SEC Form T-4

    An application for exemption from certain sections of the Trust ...
  6. Exemption

    A deduction allowed by law to reduce the amount of income that ...
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center