Nonissuer Transaction

DEFINITION of 'Nonissuer Transaction'

A tranasction not directly or indirectly executed for the benefit of the issuer. Nonissuer transactions refer to any disposition of a security that does not confer a benefit to the issuer (company).

BREAKING DOWN 'Nonissuer Transaction'

Isolated nonissuer transactions are exempt from registration requirements of the SEC. For instance, if Joe sells a hundred of XYZ to his brother, this nonissuer transaction is exempt from registration requirements.

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RELATED FAQS
  1. 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 >>
  2. If an issuer wishes to register a security in the state ...

    The correct answer is a. Registration by coordination is permitted when the issuer has filed a registration application with ... Read Answer >>
  3. Transactions are exempt from registration where …

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