Nonissuer Transaction

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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).

INVESTOPEDIA EXPLAINS '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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