Question of the Week

ABC Broker-dealer has no office in state and transacts fewer than five trades during a 12-month period. Given these facts, which of these statements are true?

I. The broker-dealer is required to register with the Administrator
II. The broker-dealer is not required to register with the Administrator
III. The transactions are considered exempt
IV. The transactions are not considered exempt

a) II & IV
b) II & III
c) I & III
d) I & IV


Answer:

The correct answer is b.

Under these circumstances, the broker-dealer is not required to register with the state and the transactions are considered exempt. This is considered an isolated non-issuer transaction exemption.