Exempt Transaction


DEFINITION of 'Exempt Transaction'

A type of securities transaction where a business does not need to file registrations with any regulatory bodies, provided the number of securities involved is relatively minor compared to the scope of the issuer's operations and that no new securities are being issued.

BREAKING DOWN 'Exempt Transaction'

Exempt transactions cut down the amount of paperwork needed for relatively minor transactions. For example, it would be a big hassle to perform a filing with the SEC every time a non-executive employee wanted to sell back some of the company's common shares he or she purchased as part of an employee stock purchase plan.

  1. Issuer

    A legal entity that develops, registers and sells securities ...
  2. Employee Stock Ownership Plan - ...

    A qualified, defined contribution, employee benefit (ERISA) plan ...
  3. Securities And Exchange Commission ...

    A government commission created by Congress to regulate the securities ...
  4. Issued Shares

    The number of authorized shares that is sold to and held by the ...
  5. Transaction

    1. An agreement between a buyer and a seller to exchange goods, ...
  6. Share Repurchase

    A program by which a company buys back its own shares from the ...
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